Citigroup has invested in BVNK, a London- and San Francisco-based startup building payments infrastructure for stablecoins.
The company told CNBC on Thursday that the investment, made through Citi Ventures, underscores the growing interest of major US banks in crypto-based settlement systems following regulatory advances like the GENIUS Act, which established clearer rules for dollar-pegged digital assets.
Stablecoins are increasingly being used for cross-border transfers because of faster settlement times and lower transaction costs compared with traditional systems. BVNK’s platform enables clients to move seamlessly between fiat and stablecoins, supporting global payments for merchants, contractors and digital banks.
Co-founder Chris Harmse said BVNK’s valuation now exceeds its prior $750 million round, though the company declined to disclose Citi’s investment amount. Harmse noted that the US is BVNK’s fastest-growing market over the past 18 months, attributing this to the GENIUS Act’s regulatory clarity and surging institutional demand for compliant infrastructure.
CEO Jane Fraser said in June that the bank is exploring issuing its own stablecoin and offering crypto custody services. Other Wall Street firms are following suit — JPMorgan launched its JPMD token, and Bank of New York Mellon and HSBC are developing tokenized deposit products.
BVNK, already backed by Coinbase and Tiger Global, competes with Alchemy Pay, TripleA and Ripple in the cross-border stablecoin market. Harmse said BVNK expects to reach profitability next year.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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Source: https://blockworks.co/news/citi-invests-in-stablecoin-startup-bvnk-as-banks-deepen-crypto-ties
