Citi Invests in BVNK, Reinforcing Its Focus on Stablecoins for On-Chain Settlements
- Citi Ventures makes strategic investment in stablecoin company BVNK
- Banks Explore Stablecoins for Digital Payments and Settlements
- Global market could reach US$1,9 trillion by 2030
Citi Ventures, the venture capital arm of Citigroup, announced a strategic investment in BVNK, a company specializing in stablecoin infrastructure for the corporate sector. The partnership reflects the growing interest of major banks in exploring the use of tokenized dollars for on-chain payments and settlements.
BVNK, which already processes over $20 billion annually, provides stablecoin solutions for global companies such as Worldpay, Flywire, and dLocal.
“Stablecoins are seeing increasing interest in their use for settling on-chain transactions and crypto assets,”
Arvind Purushotham, head of Citi Ventures, told comment on the investment . The value of the contribution was not disclosed.
Citi's entry into this segment comes as the regulatory environment in the United States becomes more favorable. The passage of the GENIUS Act in July established a federal regime for payment stablecoins, encouraging financial institutions to develop products based on digital assets. The Treasury Department recently launched a public consultation to define how the new rules will be applied.
Citibank is also evaluating its own initiatives related to tokenized money. Over the summer, CEO Jane Fraser revealed that the bank is considering issuing a stablecoin for digital payments, as well as custody and settlement services integrated with cryptocurrency ETFs.
Banks' interest in the sector is in line with optimistic growth forecasts. According to Citi Research, the total volume of stablecoins in circulation could reach $1,9 trillion by 2030, while Goldman Sachs projects the market could surpass the trillion mark as regulations become more stringent.
In addition to Citi, institutions such as JPMorgan, Bank of America, and Citigroup itself are already discussing joint partnerships to develop interoperable stablecoin solutions across different banking platforms, consolidating a global movement toward fully on-chain financial settlement.
