TL;DR
- Citi Investment: Citi Ventures invested in BVNK, a stablecoin infrastructure provider now valued at over $750M, following Visa Ventures’ earlier backing and signaling Wall Street’s growing embrace of stablecoin rails for cross-border payments.
- BVNK Expansion: BVNK enables fiat-to-stablecoin conversions for faster, cheaper global transactions, with the stablecoin market recording $9T in activity last year and a total valuation above $300B, positioning BVNK as a rising sector leader.
- Regulation & Outlook: The GENIUS Act fueled BVNK’s U.S. growth, while Citi and peers like JPMorgan and HSBC explore tokens, with analysts projecting stablecoins could reach a $4T market cap by 2030.
Citi Ventures has stepped into the digital asset spotlight by investing in BVNK, a stablecoin infrastructure provider with a valuation exceeding $750 million. The move highlights the growing trend in Wall Street of embracing crypto as the United States continues to clarify crypto regulations regarding payment systems and stablecoins.
Citi’s Strategic Bet on Stablecoins
Citi’s investment in BVNK highlights how major banks are positioning themselves for a future where stablecoins play a central role in global finance. While the exact size of Citi’s investment remains undisclosed, BVNK co-founder Chris Harmse confirmed the company’s valuation has surpassed the $750 million mark. The deal follows Visa Ventures’ earlier backing, signaling that financial giants see stablecoin rails as critical to modernizing cross-border payments.
BVNK’s Expanding Role in Payments
BVNK functions as a payment rail, allowing users to easily convert fiat currencies and stablecoins. This design allows businesses to make cross-border payments to suppliers, contractors, or merchants at lower costs and faster settlement times. Last year, the stablecoin market netted a whopping $9 trillion in transactions with a total market valuation above $300 billion as of press time. BVNK is aiming to become a key player in this sector.
U.S. Market Momentum and Regulation
The United States has become BVNK’s fastest-growing market over the past 12 to 18 months, fueled by the passage of the GENIUS Act, which provides regulatory clarity for stablecoins. Harmse noted that this environment has triggered an “explosion of demand” for building on stablecoin infrastructure. BVNK has expanded its U.S. presence with offices in San Francisco and New York, securing full 50-state coverage and strengthening its regulatory footing.
Wall Street’s Broader Crypto Push
Citi’s investment is part of a wider trend among U.S. banks. Pillars like JPMorgan recently launched its own JPMD token, and BNY Mellon and HSBC are actively considering launching tokenized deposits. Citibank is contemplating launching its own stablecoin and offering custody services for digital assets. Experts at Citi believe that the stablecoin market is poised to reach a $4 trillion market cap by 2030, a prediction that highlights the sector’s role in reshaping traditional and decentralized financial systems.
