TLDR
- Citi Ventures boosts BVNK’s valuation to over $750 million with new funding.
- Stablecoin transaction volume hit $9 trillion in the last year, driving growth.
- BVNK expands rapidly in the US, now covering all 50 states with regulatory clarity.
- Citi predicts stablecoin market cap could reach $4 trillion by 2030.
Citi Ventures has made an investment in BVNK, a London-based stablecoin payment infrastructure company, raising its valuation to over $750 million. This follows the company’s previous backing from Visa Ventures earlier in the year. Citi’s entry signals growing interest from traditional financial institutions in the stablecoin space, as both Citi and Visa explore opportunities to integrate digital assets into their operations.
Citi Ventures Joins Stablecoin Growth
Citi Ventures, the venture capital arm of Citigroup, has invested in BVNK, marking a significant step in the bank’s exploration of the stablecoin market. While the exact size of the investment was not disclosed, the move raises BVNK’s valuation beyond its previously reported $750 million.
The deal is notable because it shows the increasing involvement of traditional financial institutions in the digital asset sector. BVNK, which focuses on stablecoin payment infrastructure, has seen rapid growth, particularly in the United States, where regulatory clarity is fostering demand for its services.
BVNK’s co-founder, Chris Harmse, confirmed the deal and shared that Citi’s investment aligns with its strategy to integrate digital assets into its financial operations. In recent months, Citi has been considering offering custody services for stablecoins and other digital assets. This investment is another example of how traditional finance institutions are tapping into the fast-growing digital asset space.
Stablecoin Market Growth and Citi’s Outlook
The stablecoin market has shown rapid growth in recent years, with the total transaction volume nearing $9 trillion in the last year. Data from CoinMarketCap indicates that the market value of existing stablecoins is over $300 billion.
Citi analysts have also revised their predictions, forecasting the stablecoin market’s total value could reach $4 trillion by 2030. According to Citi, stablecoins will not disrupt traditional banking, but they could reshape how the financial system operates, especially through innovations such as tokenized bank deposits.
Stablecoins have become a critical part of the cryptocurrency market, providing stability compared to more volatile cryptocurrencies like Bitcoin. As financial institutions like Citi and Visa invest in companies like BVNK, they are positioning themselves to support this growing sector and its potential to reimagine finance.
BVNK Expands in the US
BVNK is expanding rapidly in the United States, with full coverage in all 50 states. The company is strengthening its position by establishing offices in key cities like San Francisco and New York City. This expansion is a response to the growing demand for stablecoin infrastructure, which has been bolstered by clearer regulatory guidelines in the US.
Chris Harmse noted that regulatory clarity in the US, particularly with the passing of the GENIUS Act, has led to an increase in demand for stablecoin infrastructure. Over the past 12 to 18 months, BVNK has seen significant growth in the US, which is now its fastest-growing market. The company’s expansion strategy includes building partnerships with other key players in the stablecoin and digital asset space.
Citi and Visa’s Continued Interest in Digital Assets
The investment in BVNK follows similar moves by other financial institutions, including Visa, which invested in the company earlier this year. Both Citi and Visa are exploring how digital assets, such as stablecoins, can fit into their existing operations. This includes offering custody services for stablecoins and supporting the growing demand for crypto exchange-traded funds (ETFs).
As more traditional financial institutions engage with digital asset companies like BVNK, the future of stablecoin infrastructure seems promising. With the backing of both Citi and Visa, BVNK is positioned to expand its reach and contribute to the growing trend of integrating stablecoins into the global financial system.
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