Citi Joins Visa in Backing BVNK to Accelerate Stablecoin Innovation and Connect Traditional Finance

US multinational bank Citigroup has joined Visa in making a strategic investment in stablecoin payments platform BVNK. The amount Citigroup invested remains undisclosed. However, BVNK will use the funds to drive stablecoin innovation and accelerate the global movement of money.

Citi Makes Strategic Investment in BVNK

On Thursday, October 9, the venture arm of the US multinational bank Citigroup announced a strategic investment in BVNK, a stablecoin infrastructure provider. The venture capital arm of Citigroup, Citi Ventures, made the investment in the London-based stablecoin issuer. 

Citigroup’s investment highlights a broader trend of big US banks ramping up their presence in the stablecoin and digital asset space. The announcement comes shortly after Visa invested in the BVNK, which processes over $20 billion annually for global enterprises and payment service providers.

While the size of the investment wasn’t disclosed, Arvind Purushotham, the head of Citi Ventures, said they were “impressed by BVNK’s enterprise-grade infrastructure and their proven track record.” Chris Harmse, co-founder of BVNK, said in an interview that the valuation of his company is more than the $750 million that was publicly disclosed at its last funding round.

The fundamental idea behind BVNK is a payment rail that facilitates stablecoin payments all over the world so that the customer can transfer money between fiat and cryptocurrency. Jesse Hemson-Struthers, Co-Founder and CEO of BVNK, said that the investment will be used to reinforce their mission of accelerating the global movement of money. 

Due to the speed, low cost, and 24/7 settlement that BVNK offers through stablecoins, many big banks see it as the potential key tool for the future of cross-border transactions. The platform also helps companies launch innovative financial products with enterprise-ready security and compliance.

Regulation Fuels Massive BVNK Growth

In an interview, Chris Harmse, co-founder of BVNK, said that his company has been seeing momentum, especially in the US He explained that the US has been BVNK’s fastest-growing market over the last 12-18 months, thanks to a more favorable regulatory environment.

The recently passed GENIUS Act, which brought clarity to the stablecoin market, has led to an explosion in demand for top stablecoin infrastructure like BVNK. With the inflow of capital, BVNK will be working to expand its customer base by onboarding digital-only banks that may use stablecoins for their core checking account.

 Coinbase and Mastercard in Advanced Talks To Purchase BVNK

Amidst the Citigroup investment, there are reports that Coinbase and Mastercard have each held advanced talks to acquire BVNK. According to insider sources, discussions are still ongoing, and Coinbase looks to have the upper hand in acquiring BVNK. 

The sources claimed that the acquisition of BVNK could cost between $1.5 billion and $2.5 billion, which will go on record as the largest stablecoin-related deal to date. While none of these have been officially confirmed by any of the parties, this highlights the growing interest in stablecoins among Wall Street giants since the passage of the GENIUS Act.