Citi Ventures Invests in Stablecoin Firm BVNK, Valuation Surpasses $750M
Citi Ventures, Citigroup’s venture capital arm, has invested in BVNK, a stablecoin infrastructure company. The exact investment amount remains undisclosed, but BVNK’s valuation now exceeds $750 million. This strategic move underscores BVNK’s growing influence in the stablecoin market.
BVNK’s platform acts as a bridge for stablecoin transactions, facilitating smooth transitions between conventional and digital currencies. This technology enables businesses to make cross-border payments effortlessly, attracting interest from digital banks and neobanks. Thes institutions aim to integrate stablecoins into everyday financial services like checking accounts.
Chris Harmse, BVNK’s co-founder, noted the company’s rapid growth in the U.S., its fastest-growing market. This expansion is partly due to the GENIUS Act, a regulatory framework that clarifies stablecoin operations. “U.S.banks, including Citi, are investing in leading businesses to stay ahead in the evolving payments landscape,” Harmse told CNBC.
the firm’s services are gaining popularity, especially with the supportive regulatory surroundings. Harmse explained, “The GENIUS Act has created a more favorable climate for stablecoin operations, encouraging major banks to support innovative payment solutions.”
Despite past profitability challenges, BVNK aims to turn a profit next year.
BVNK competes with firms like Alchemy Pay and Ripple in the blockchain-based payments sector. While specific plans with Citi are not yet clear, Harmse hinted at exciting future collaborations. Citi’s CEO, Jane Fraser, has previously discussed exploring stablecoin issuance and crypto custody services.
