BlockFi Credit Card and Bidding War of Coinbase, Binance US and Curve
Coinbase is reportedly “on a shopping spree,” with smaller fintech firms like Curve and Binance US also looking to acquire the credit card client assets from the ill-fated BlockFi team.
Blockworks has learned that Binance US and Coinbase are among the bidders for the this credit card program and its associated customers, while smaller fintech competitor Curve is also interested in the approximately 87,500 BlockFi accounts.
BlockFi suspended withdrawals on November 12, citing a “lack of clarity” regarding the evolving situation at FTX and Alameda Research, both of which have since initiated bankruptcy proceedings.
It was reported by some users that their cards have stopped working in the last 24 hours.
The platform is thought to have a $800 million hole in its balance sheet and is not thought to be heavily involved in the negotiations to buy its card assets.
According to a source close to the situation, a deal is expected within 72 hours, and that the majority of the ongoing negotiations regarding the acquisition of the BlockFi card assets are being conducted by the fintech servicing firm Deserve, which operates the BlockFi program. The issuing bank is Evolve Bank & Trust of Florida.
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