Did Bank of England Stablecoin Blunder Just Spook $2Bn Coinbase Deal?

Core Insights - Acquisition talks between Coinbase and BVNK have fallen through, likely influenced by the recent Bank of England stablecoin framework proposal [1][4] - The proposed acquisition was valued at approximately $2 billion, which would have significantly impacted the UK stablecoin industry [2][5] - Coinbase has announced a partnership with Citi to enhance digital asset payments for institutions, indicating ongoing growth initiatives despite the failed acquisition [6][7] Group 1: Acquisition Details - The acquisition was expected to be one of the largest in the stablecoin sector, nearly double the size of Stripe's $1.1 billion acquisition of Bridge [5] - Prior to the breakdown, discussions between Coinbase and BVNK were reportedly progressing well, with a potential deal expected by the end of Q4 [3] - An exclusivity arrangement had been established, preventing BVNK from negotiating with other parties, indicating the deal was close to finalization [4] Group 2: Regulatory Impact - The Bank of England's proposal included a holding limit of £20,000 per UK-based stablecoin, which has been criticized as anti-innovation [5] - The regulatory environment appears to have deterred Web3 firms from entering the UK market, contributing to Coinbase's decision to withdraw from the acquisition [2][4] Group 3: Ongoing Initiatives - Despite the setback with BVNK, Coinbase is pursuing other growth opportunities, including a partnership with Citi for 24/7 digital asset payments [6] - The collaboration aims to enhance settlement arrangements and improve payment systems for Citi's institutional clients [7]