Citi invests in stablecoin infrastructure firm BVNK as U.S. banks deepen crypto exposure

Citi Ventures has made a strategic investment in stablecoin infrastructure company BVNK, which now has a valuation exceeding $750 million.

BVNK secures Citi Ventures backing, valuation tops $750M

Citi Ventures, the venture capital arm of Citigroup, has made a strategic investment in stablecoin infrastructure company BVNK. The amount of Citi’s investment was not disclosed, but BVNK co-founder Chris Harmse confirmed in an interview with CNBC that the company’s valuation now exceeds the $750 million mark from its previous funding round.

BVNK’s platform acts as a payments rail for stablecoin transactions, allowing clients to move seamlessly between fiat and digital currencies. The firm’s technology can be used by companies to pay suppliers, contractors, or merchants across borders, with growing interest from digital-only and neobanks seeking to integrate stablecoins into core financial services such as checking accounts.

According to Harmse, the company’s services are gaining traction in the U.S., its fastest-growing market over the past 12 to 18 months, amid what the industry views as a more favorable regulatory environment following the GENIUS Act, a new framework providing clarity for stablecoin operations.

“U.S. banks at the scale of Citi, because of the GENIUS Act, are putting their weight behind … investing in leading businesses in the space to make sure they are at forefront of this technological shift in payments,” Harmse said. 

Citi’s investment comes despite BVNK having “dipped in and out of profitability” in recent years. However, Harmse said the company expects to be profitable next year.

The firm is also backed by Coinbase and Tiger Global, positioning it among a competitive field that includes Alchemy Pay, TripleA, and Ripple, all vying for dominance in blockchain-based global payments.

While BVNK did not elaborate on specific plans with Citi, Harmse described the collaboration as “too early to announce,” adding that the Wall Street bank has been expanding its cross-border payments capabilities. Citi’s move follows CEO Jane Fraser’s June comments that the bank is exploring the issuance of its own stablecoin and considering crypto asset custody services.