Key Notes
- Citi invests in stablecoin payments infrastructure firm, BVNK.
- The deal reflects growing US bank interest in stablecoins following clearer regulations.
- BVNK’s valuation has surpassed $750 million from its last funding round.
Citi, the third-largest bank in the United States, has made a strategic investment in BVNK, a London-based stablecoin infrastructure firm backed by Coinbase and Tiger Global. The move comes amid clearer regulations and rising demand for stablecoins among US banks.
BVNK operates a payments platform that enables global transactions using stablecoins, allowing easy conversion between fiat and crypto. In a recent interview with CNBC, co-founder Chris Harmse said that the startup has seen strong growth in the US over the past year.
BVNK has declined to disclose the size of Citi’s investment or its current valuation. However, Harmse confirmed that the startup’s valuation has exceeded the $750 million figure from its previous funding round.
Harmse noted that the Wall Street giant has been expanding its cross-border payments capabilities. The company is also targeting digital-only banks and neobanks that may integrate stablecoins into their core banking products.
It is interesting to note that in July, Citi’s CEO Jane Fraser revealed that the bank is exploring the possibility of issuing its own Citi stablecoin .
Stablecoin Market Surges
Stablecoins are rapidly gaining traction due to their speed, low cost, and 24/7 settlement capabilities. Over the past 12 months, stablecoin transactions reached nearly $9 trillion, according to Visa data.
According to data by CoinMarketCap, the total market cap of all stablecoins currently stands at $314 billion. Tether’s USDT USDT $1.00 24h volatility: 0.0% Market cap: $178.41 B Vol. 24h: $122.04 B and Circle’s USDC $1.00 24h volatility: 0.0% Market cap: $75.61 B Vol. 24h: $11.23 B lead the sector, valued at $178 billion and $75 billion, respectively.
JPMorgan predicts that demand could add another $1.4 trillion in dollar-based stablecoins by 2027 amid their expanding role in global finance.
Meanwhile, Standard Chartered notes that users are seeking safer, inflation-resistant digital alternatives. It estimates that stablecoins could draw around $1 trillion away from emerging-market banks within the next three years.
US Banks Continue to Enter the Market
This growing adoption comes after the US passed the GENIUS Act , providing long-awaited regulatory clarity for stablecoins. The Trump family-backed WLFI even launched its own stablecoin, USD1, earlier this year.
Citi joins a growing list of American financial giants exploring blockchain technology to modernize payments and settlements. Custodia Bank and Vantage Bank issued “Avit” tokens, tokenized US dollar demand deposits on Ethereum.
JPMorgan Chase has already rolled out its own blockchain-based payment token, JPMD. Meanwhile, Bank of America is also preparing to launch a USD-backed stablecoin once regulations are finalized.
next
