In a major leap toward integrating self-custody wallets with everyday finance, Exodus Movement has signed a $175 million deal to acquire W3C Corp, the parent company of crypto-friendly payment providers Baanx and Monavate. The acquisition puts Exodus squarely on the path to becoming a vertically integrated player in the crypto payments ecosystem—controlling everything from asset storage to transaction rails.

Wallet meets payments infrastructure

Exodus has built its brand on providing sleek, user-friendly wallets that give users full custody of their digital assets. But this move signals a new ambition: to turn those wallets into true financial hubs, enabling users not only to hold crypto but to spend it with the same ease as fiat currency.

With Baanx and Monavate now under its umbrella, Exodus gains direct access to critical infrastructure like card issuing, transaction processing, and compliance frameworks. That means Exodus users could soon swipe a debit card backed directly by their on-chain assets, or access stablecoin payments seamlessly integrated into the app.

This isn’t about being another crypto wallet. It’s about being the first wallet that also functions like a bank.

Terms of the deal and financing

The acquisition, expected to close in early 2026, is financed through a mix of cash and credit. Exodus is securing funding via a lending facility with Galaxy Digital, backed in part by its Bitcoin holdings. This is both a savvy move and a calculated risk—using crypto collateral in a volatile market can amplify upside, but also exposes the company to market drawdowns.

Still, the message is clear: Exodus is betting on Bitcoin long term, and is leveraging its own balance sheet to double down on crypto-native financial infrastructure.

Strategic shift: from holding to spending

What makes this deal so significant is the directional shift it signals. Most wallets—hardware or software—have stopped short of solving the everyday usability problem. People can hold assets, but spending them usually requires off-ramping through exchanges, third-party cards, or custodians.

By contrast, Exodus now controls a vertically integrated stack that could take a user from cold storage to tap-to-pay in seconds. If executed well, it could mark a major evolution in self-custody—from a niche security practice to a full-featured alternative to traditional banking.

It also opens the door to stablecoin integration, programmable payments, and more advanced DeFi access—all without compromising user control of private keys.

Risk profile: market exposure and compliance

Of course, there are headwinds. The integration of payments infrastructure is complex, especially in jurisdictions where financial compliance is stringent and ever-changing. Onboarding new users, securing licenses, maintaining AML/KYC standards, and building regulatory trust takes time and resources.

There’s also the financing risk. Tying operational runway to crypto market cycles—via Bitcoin-backed credit lines—creates a dependency that can be both a strength and a vulnerability. A bull market could supercharge the project. A correction could tighten liquidity.

But Exodus seems prepared to manage these variables, signaling confidence not just in crypto’s long-term growth, but in its own ability to lead the transition from speculative assets to everyday utility.

What it means for the industry

This acquisition is more than just M&A. It’s an evolution in crypto’s UX. If Exodus can successfully build a wallet that handles custody, compliance, payments, and user experience under one roof, it may set the standard for a new category of fintech.

It could also pressure traditional banks and fintechs to integrate crypto more deeply, or risk being leapfrogged by crypto-native services that offer better speed, lower fees, and superior global access.

Final thoughts

Exodus isn’t just adding features—it’s laying down rails for a self-sovereign financial system. The acquisition of W3C may look like a backend infrastructure play, but it’s really a front-end transformation of how people use money. Wallets are no longer just vaults. They’re becoming launchpads.

In a striking push for financial innovation, Japan’s regulatory authority has thrown its weight behind a collaborative initiative by the nation’s largest banks to launch a yen‑backed stablecoin. As Japan positions itself at the frontier of payments and digital finance, this marks a critical turning point in how traditional institutions and blockchain converge.

A new era of payments: regulator says yes

The Financial Services Agency (FSA) of Japan has officially endorsed what it calls its “Payment Innovation Project” — a scheme that brings together major banks and corporate players to issue a yen‑denominated stablecoin. According to the announcement, the project begins this month, and the immediate goal is to pilot payment‑stablecoin use among corporate clients.

Participants include Mizuho Bank, MUFG Bank (via its issuance platform “Progmat”), Sumitomo Mitsui Banking Corporation, and Mitsubishi Corporation alongside its financial arm.

The FSA emphasizes that the move responds to a broader trend: the use of blockchain technology to enhance payment systems and corporate settlement frameworks. It also indicated that after the pilot phase, results and conclusions will be published — meaning the regulator wants transparency and oversight from the start.

Why this matters

This development is significant in several key ways.

Firstly, it signals institutional acceptance of stablecoins within a regulated banking environment — not just in cryptocurrencies or niche use‑cases. By backing a yen‑stablecoin initiative, Japan is saying stablecoins deserve a seat at the table of mainstream finance.

Secondly, the collaboration among major banks matters because they serve hundreds of thousands of corporate clients in Japan. The participating banks and firms collectively serve more than 300,000 corporate users. That means this isn’t a small pilot of a handful of users; it has potential scale and could meaningfully impact corporate treasury, cross‑border settlement, and payment efficiency.

Thirdly, for the broader stablecoin and digital‑asset ecosystem, this is a signal that regulatory acceptance paired with traditional banking infrastructure may accelerate adoption. If banks issue — or co‑issue — stablecoins under the oversight of a regulator like the FSA, then the “wild‑west” narrative of crypto may shift toward “bank‑backed digital money” narratives.

Strategic implications for banks and corporates

For the banks involved, launching a stablecoin gives them a dual opportunity: one, to modernize their internal and cross‑corporate settlement operations, and two, to position themselves as platform providers for digital‑asset infrastructure rather than mere intermediaries. For corporates, the promise is lower settlement friction, more real‑time settlement (or closer), and potential cost savings.

However, this is not without challenges. The banks will need to ensure seats at the table for compliance, reporting, reserve transparency (for the coin‑backing), user protection, operational risk (smart‑contract bugs, blockchain outages, etc.), and possibly new regulatory frameworks. The FSA explicitly stressed the need to ensure users are protected and informed.

What the pilot will test and next steps

The pilot phase begins with issuance of payment‑stablecoins by the banks in question. They will likely test transactions among corporate clients, gauge settlement speed, examine cost savings, user experience, and perhaps integration with broader payment rails. Key metrics will probably include transaction volume, error/risk events, compliance overhead, effects on liquidity/reserve management, and customer uptake.

Following completion, the Japanese regulator intends to publish results and conclusions. That transparency will matter widely, as other jurisdictions and digital‑asset players will watch for lessons learned.

Broader regulatory and industry context

This initiative comes amid a broader wave of regulatory openness and crypto‑fintech experiments in Japan. The FSA and other Japanese regulators have recently been active in reviewing regulation for crypto, including considering whether banks can hold crypto, and addressing issues like insider trading in crypto markets.

Japan’s influential role here may serve as a model for other banking systems where stablecoins are considered more than speculative tokens and instead digital representations of fiat‑value for everyday payment and settlement.

Risks and considerations

Even with regulatory backing and major bank involvement, several caveats remain. It’s still early days, so operational glitches could occur — blockchain failures, integration issues with legacy systems, or unanticipated regulatory burdens. The banks will also need to navigate reserves and backing transparency: if the stablecoin is truly backed 1:1 by yen or equivalent assets, reserve audits will be important. They must also address AML/KYC and cross‑border legal issues if the stablecoin is used internationally.

Another consideration is whether corporates will adopt in meaningful volume — changing behavior from existing payment methods (bank transfers, commercial paper, etc.) takes time. And finally, competition could come from non‑bank stablecoins or global stablecoin initiatives, meaning banks must differentiate on trust, integration and regulation.

What to watch

In the coming weeks and months, it will be important to watch for when the banks issue the stablecoin, how many corporates sign up, what volume is processed, how settlement times compare to legacy methods, and whether the project expands beyond domestic corporate clients into cross‑border flows or retail use. Also of interest: how the FSA evaluation is structured and what transparency requirements are imposed.

For the crypto industry more broadly, this could signal an acceleration of tokenized fiat led by regulated banks — possibly raising the bar for stablecoin projects and redefining competition from un‑backed or lightly‑backed tokens toward bank‑backed or regulated stablecoins.

When the payments giant Mastercard signals it is ready to drop traditional batch‑settlement mechanics in favour of always‑on crypto‑native rails, the ripple effects could reshape the financial infrastructure. Its reported push of up to $2 billion to acquire infrastructure providers in the crypto space isn’t just a headline — it’s a bellwether for change. The question is: how far and how fast?

Rethinking settlement: from batch to real‑time

The strategy centres on Mastercard’s reported advanced talks to acquire Zero Hash (for roughly $1.5–2 billion) and earlier engagement with BVNK. These firms provide regulated custody, the fiat‑to‑stablecoin rails, and infrastructure that allow payments to move seamlessly between fiat and digital assets.
By folding such capabilities in, Mastercard aims to shift from pilot phases to commercial deployment of settlement using stablecoins. This means the network could move away from “T+1” or even “T+2” settlement windows toward near‑instant on‑chain netting. Support for settlement in stablecoins like USDC and EURC already exists in certain regions.

Why this matters for banks and merchants

For banks and processors, always‑on settlement means reduced need for prefunding, less daylight‑overdraft exposure, and fewer weekend or holiday bottlenecks. Merchants could receive settlement more promptly, improving working‑capital dynamics and liquidity. Cross‑border flows may become smoother, with fewer intermediary correspondent banks and shorter delays.
Yet, the shift isn’t simply a technological upgrade. Core banking models, back‑office workflows, compliance routines and accounting systems must all be re‑designed around a “24/7” clock rather than “business hours”.

The hurdles that remain

Even with infrastructure in place, key constraints must be addressed before full real‑time, always‑on settlement takes hold. Fiat‑rail limits persist: national clearing houses and real‑time gross settlement systems still observe maintenance windows and business‑day constraints. Operational risks remain: custody key management, smart‑contract vulnerabilities, stablecoin de‑peg risk and chain congestion all require rigorous mitigation.
From a compliance and accounting perspective, continuous settlement introduces new demands. Anti‑money‑laundering checks, sanctioning, travel‑rule obligations, and dispute/chargeback workflows must adapt to nonstop flows rather than periodic batches. Liquidity and vendor capabilities may also limit the speed of transition.

Strategic take‑aways and what to watch

Mastercard’s move signals that major payment networks are no longer treating crypto as an experimental add‑on but as a potential core component of settlement infrastructure. The implications for banks, fintechs and merchants are significant: those who adapt early may gain a competitive edge in capital efficiency and settlement agility.
Key signals to monitor include whether the Zero Hash acquisition completes, any definitive deal involving BVNK, broader rollout of USDC/EURC settlement in new regions, and transitions of programs like the Multi‑Token Network and Crypto Credential from pilot to commercial rollout.

Implications for crypto and the broader ecosystem

For the crypto ecosystem the entry of a giant like Mastercard in this depth offers validation of stable‑coin based settlement and institutional blockchain infrastructure. The shift suggests that digital‑asset rails are not just for speculation or venue trading but are increasingly viewed as foundational plumbing for payments and treasury.
On the flip side, the hybrid phase ahead means that legacy systems won’t disappear overnight. The architecture of finance will likely evolve in layering: traditional rails and crypto‑enabled rails will co‑exist for some time. Entities that understand both worlds—regulation, tech, operational risk—will be best placed to capture the upside.

In short, Mastercard’s reported multi‑billion‑dollar foray into crypto settlement infrastructure may mark the beginning of the end of “banking hours” as we know them. The journey from batch‑based to always‑on, token‑enabled settlement could redefine how value moves globally.