Prime Highlights
- Citi Ventures has invested in BVNK, a stablecoin infrastructure startup, signaling growing interest from major U.S. banks in cryptocurrency and blockchain.
- BVNK’s platform enables fast, low-cost, and 24/7 international payments using stablecoins, highlighting its potential role in cross-border transactions.
Key Facts
- Stablecoin transactions reached nearly $9 trillion over the past 12 months, with a total market value exceeding $300 billion.
- BVNK is backed by investors like Coinbase and Tiger Global, and the company aims to become profitable next year.
Key Background:
Citi Ventures, the investment arm of Citigroup, has invested in BVNK, a startup that provides infrastructure for stablecoins. The investment amount was not disclosed, but BVNK’s co-founder, Chris Harmse, said the company’s valuation is now higher than the $750 million reported in its last funding round.
BVNK offers a global payments system for stablecoins, making it easy to move money between traditional currencies and digital assets. Stablecoins are digital currencies linked to regular money and are becoming popular for international payments because they are fast, cheap, and always available.
In the past year, stablecoin transactions totaled nearly $9 trillion, according to Visa, and the total market value of all stablecoins is over $300 billion, according to CoinMarketCap. The growing interest is supported by new U.S. regulations, including the recently passed GENIUS Act, which provides clearer rules for the stablecoin market.
“We are witnessing a significant rise in demand for businesses building on stablecoin infrastructure, thanks to regulatory clarity,” Harmse said. BVNK is actively expanding its client base, including digital-only banks and neobanks that may integrate stablecoins into their core services. BVNK’s technology also helps businesses pay suppliers, contractors, and merchants in other countries easily.
The trend of U.S. banks delving into crypto and blockchain is rising in investment by Citi. To use an example, JPMorgan Chase introduced a token that is a stablecoin-like, and banks, such as BNY Mellon and HSBC, are experimenting with digital deposits to accelerate the procedure and reduce the price of transacting.
BVNK is also supported by investors like Coinbase and Tiger Global. The company has seen ups and downs in profitability due to growth investments, but expects to become profitable next year.
Harmse said partnerships with big financial institutions like Citi are important for leading innovation in digital payments.
As more U.S. banks use crypto, BVNK’s stablecoin system can help make international payments quicker, cheaper, and easier.
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