BVNK in Talks for $50 Million Funding Amid Stablecoin Growth
London-based payments infrastructure startup BVNK is in discussions to secure at least $50 million in funding amid rising interest in stablecoin payments. Backed by Tiger Global, the firm aims to leverage the sector's growth following Stripe’s $1.1 billion acquisition of stablecoin-focused startup Bridge.
Founded in 2021, BVNK processes $8 billion annually and employs over 270 staff. It operates under regulatory licenses in the UK, Spain, South Africa, and Malta. The company is recognized on the Fintech100 list by CB Insights, underscoring its significance in financial technology. In May 2022, BVNK raised $40 million from investors including The Raba Partnership, Avenir, and Kingsway Capital.
In addition to stablecoin services, BVNK offers a variety of customized products for users.
The Stablecoin Revolution
The increasing interest in stablecoins is transforming global payments. With $5 trillion in stablecoin transactions over the past year, this figure surpasses one-third of Visa’s total cumulative volume over 60 years. Corporations and financial institutions now view stablecoins as efficient and transparent payment solutions.
BVNK launched its proprietary solution Layer1 in June 2024, providing self-custody digital asset solutions that facilitate stablecoin payments for businesses, allowing complete control over their digital assets and private keys.
Major companies are adopting stablecoin payments; PayPal introduced its US dollar-denominated stablecoin, PayPal USD (PYUSD), while Visa assists banks in launching their own stablecoins.
Regulatory frameworks in Europe, Asia, and the Middle East are increasingly focusing on stablecoins, enhancing credibility in the sector. Recent acquisitions, like Coinbase’s purchase of Utopia Labs, indicate heightened competition among firms vying for market dominance.
Global Investors Eye BVNK amid Sector Growth
The spike in stablecoin adoption and Stripe's acquisition have increased investor interest in BVNK. According to a recent Bloomberg report, there is significant demand for the funding round, with BVNK’s technological offerings aligning with rapid sector innovation.
While the company seeks at least $50 million, the final amount and list of investors may vary as negotiations progress.
As stablecoins gain regulatory legitimacy and adoption by major financial players, BVNK is positioned to lead advancements in payment innovation. The ongoing funding discussions could provide the necessary momentum for the company.