Citi Invests in Stablecoin Platform BVNK Amid Growing US Demand
Citi, the third-largest U.S. bank, has strategically invested in BVNK, a London-based stablecoin infrastructure firm, aligning with clearer regulations and rising stablecoin demand among U.S. banks.
- BVNK's platform enables global transactions using stablecoins with easy fiat and crypto conversion.
- Co-founder Chris Harmse reported significant growth in the U.S. market over the past year.
- Specifics of Citi’s investment and BVNK’s current valuation remain undisclosed, though valuation exceeds $750 million from a previous round.
- Citi is enhancing cross-border payment capabilities and targeting digital-only banks for stablecoin integration.
Stablecoin Market Developments:
- Stablecoin transactions reached nearly $9 trillion over the past 12 months (Visa).
- Total stablecoin market cap is $314 billion, led by Tether (USDT) at $178 billion and Circle (USDC) at $75 billion.
- JPMorgan anticipates an additional $1.4 trillion in dollar-based stablecoins by 2027 due to their growing financial role.
- Standard Chartered predicts stablecoins could divert about $1 trillion from emerging-market banks in three years.
U.S. Banks' Involvement:
- The GENIUS Act offers regulatory clarity for stablecoins, prompting increased adoption.
- WLFI launched its stablecoin, USD1, backed by the Trump family.
- Citi, Custodia Bank, Vantage Bank, and JPMorgan Chase are exploring blockchain for modernized payments.
- Bank of America plans to introduce a USD-backed stablecoin pending final regulations.