Citi Backs BVNK as Coinbase and Mastercard Enter $2.5B Bidding War for Stablecoin Infrastructure

Institutional adoption deepens as stablecoin rails become the next frontier for traditional finance and crypto payments

TL;DR:

• Citi Ventures has invested in BVNK, a global stablecoin infrastructure provider processing over $20 billion annually.
• Coinbase and Mastercard are reportedly in advanced talks to acquire BVNK for $1.5–$2.5 billion.
• The move reflects Wall Street’s growing integration into stablecoin settlement networks amid surging crypto price index gains and clearer U.S. regulation.

Citi Ventures, the investment arm of Citigroup, has taken a strategic stake in BVNK, a London-based fintech building cross-border stablecoin infrastructure for institutions and payment service providers. The funding, announced on October 9, 2025, marks a deepening alignment between legacy banking and blockchain-based settlement systems as stablecoins capture the lion’s share of crypto trading activity. BVNK, which already processes more than $20 billion annually, said the capital will help accelerate its push to connect fiat and digital payment rails worldwide, though neither party disclosed the deal’s size.

BVNK’s cofounder Chris Harmse described the investment as a validation of the firm’s enterprise-grade platform, now supporting clients such as Worldpay, Deel, and dLocal. He noted that the company’s valuation has surpassed the $750 million reported in its previous round and that growth in the United States has become its fastest-expanding market, driven by regulatory clarity under the newly enacted GENIUS Act. That law, passed in July 2025, establishes formal oversight for U.S.-dollar-backed stablecoins, effectively opening the door for banks and corporates to use them in on-chain settlement and cross-border finance.

Citi Ventures head Arvind Purushotham said the bank was impressed by BVNK’s compliance architecture and its “proven track record in enabling seamless, multi-rail settlement.” Citi’s research highlights that stablecoins now represent more than 80 percent of trading volume on centralized exchanges, with nearly all denominated in U.S. dollars. The bank expects payment volumes—excluding institutional internal transfers—to expand roughly 56 percent in 2024 and another 60 percent in 2025, reflecting how digital tokens are moving closer to mainstream payment systems. Stablecoins, Citi argued, have evolved from speculative crypto tools to critical infrastructure that could reshape treasury management and settlement operations across global markets.

BVNK’s infrastructure is designed to let enterprises send, receive, and store both fiat and stablecoins across blockchains and banking networks such as ACH, SWIFT, SEPA, and Fedwire. The company holds more than 25 regulatory approvals and maintains ISO 27001:2022 and SOC 2 Type II certifications, along with 99.9 percent uptime—figures positioning it as a credible intermediary between traditional financial systems and tokenized payment rails. BVNK has raised over $90 million in total funding to date, with earlier backing from Visa, Tiger Global, and Haun Ventures. The firm’s product suite spans virtual accounts, automated conversions, and managed wallets that power real-time settlements for marketplaces and payroll providers.

The corporate intrigue surrounding BVNK intensified when reports surfaced that Coinbase and Mastercard are separately negotiating to acquire the company, with offers ranging from $1.5 billion to $2.5 billion. People familiar with the talks suggested Coinbase currently holds an advantage in the process, though neither side has finalized terms. If completed at the higher end of that range, the deal would eclipse Stripe’s $1.1 billion purchase of Bridge earlier this year, setting a record for the largest acquisition in the stablecoin infrastructure space. Analysts note that BVNK’s blend of regulatory reach, institutional clients, and high transaction throughput gives it strategic value for any firm seeking to dominate stablecoin settlement flows—a critical component of crypto market liquidity and the broader coin market cap landscape.

Industry observers view this convergence of Citi’s venture funding and potential corporate buyouts by Coinbase and Mastercard as evidence that the once-distinct boundaries between banking and crypto infrastructure are dissolving. The stablecoin sector, now estimated around $266 billion in market capitalization and projected to hit $400 billion within a year, is increasingly seen as the connective tissue of global finance. As crypto price index benchmarks stabilize and mainstream institutions move beyond pilot projects, the narrative has shifted from cautious exploration to strategic control of payment infrastructure.

The broader implication is that stablecoin networks are no longer peripheral to digital assets—they are the plumbing of a hybrid financial system. Citi’s entry and the ongoing bidding war underline how financial giants now view these rails as essential infrastructure rather than speculative experiments. BVNK’s role at the center of this race highlights a structural transformation: the future of cross-border money movement is being written not by crypto startups alone but through collaborations that blend regulatory precision, banking capital, and blockchain speed—reshaping how liquidity flows across the world’s financial arteries.

This article has been refined and enhanced by ChatGPT.