The cryptocurrency wallet provider Exodus plans to use its Bitcoin reserves to fund a significant move into on-chain payments, reaching a $175 million agreement to acquire W3C Corp, the parent company of payment infrastructure providers Monavate and Baanx.

This agreement, announced on Monday, marks a significant strategic shift for the New York Stock Exchange-listed company. By incorporating Monavate and Baanx, Exodus aims to become one of the few self-custody wallets that control the entire payment stack, from cryptocurrency storage to card issuance.

CEO JP Richardson stated, "By bringing card and payment infrastructure in-house, we are bridging the gap between holding and spending, positioning Exodus as the only platform you need for your funds."

The company plans to directly integrate issuance, processing, and compliance tools into its consumer and business products, reducing reliance on third-party vendors and supporting a broader range of assets, including the most widely used payment stablecoins. The company also expects to gain the ability to issue cards through Visa, Mastercard, and Discover.

To fund this $175 million deal, Exodus will use cash on hand and tap into its credit line with Galaxy Digital, a loan secured by the company's Bitcoin (BTC) holdings. As part of the agreement, Exodus has provided W3C with a $58.8 million loan to support its acquisition of Monavate and Baanx, and may provide an additional $10 million as working capital. The transaction is expected to be completed in 2026.

Exodus CFO James Gernetzke stated, "The economic benefits from exchange fees, processing fees, and project fees are expected to become a foundational part of our payment and transaction services business."

As part of the deal, Exodus's on-chain exchange aggregator XO Swap will gain access to Monavate and Baanx tools for programmable payments and one-stop card issuance. This announcement comes after Exodus's recent acquisition of the Latin American stablecoin payment startup Grateful.

Cointelegraph has reached out to Exodus for comment but has not received a response as of the time of publication.

Exodus's plan to acquire W3C comes as major payment networks are increasing their investments in stablecoins and blockchain-based settlement.

In September, Visa began piloting a new system that allows banks and financial institutions to pre-fund cross-border payments using USDC and EURC, aimed at speeding up global transfers.

This move follows Swift's announcement of a collaboration with Ethereum developer Consensys and over 30 financial institutions to establish a blockchain-based settlement platform designed for real-time cross-border payments around the clock.

Related: Berachain calls reports on venture capital refund agreements "incomplete"

Original article: “Exodus taps Bitcoin (BTC) holdings to fund $175M move into on-chain payments”

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