Stablecoins are evolving from just a crypto tool into a key part of modern finance.
As regulatory clarity around these assets improves, traditional banks are also exploring them to benefit from their growing use and the shift toward faster, digital payments.
In recent development, Citi Ventures has made a strategic investment in BVNK, a global platform focused on stablecoin infrastructure.
Arvind Purushotham, Head of Citi Ventures, acknowledged the growing use of stablecoins for crypto and on-chain transactions. He also praised BVNK’s robust infrastructure and strong track record in the space, making them a valuable partner.
BVNK’s technology acts as a global payments rail, enabling users to move money seamlessly between fiat and stablecoins.
Although Citi did not reveal the investment amount or BVNK’s current valuation, co-founder Chris Harmse told in an interview with CNBC that the company is now worth more than the $750 million reported in its last funding round.
BVNK’s platform allows customers to pay suppliers, contractors, or merchants internationally. The company is now looking to expand its customer base, including digital-only banks and neobanks that may use stablecoins for everyday accounts and transactions.
BVNK processes over $20 billion a year for global companies and payment providers, and offers a full-stack solution for businesses at every stage of their stablecoin journey. The platform powers leading firms like Worldpay, Flywire, and dLocal, helping them move money efficiently and securely.
CEO Jesse Hemson-Struthers said that the investment supports their mission to speed up global money movement. This follows recent investments in BVNK from Visa, Haun Ventures, Tiger Global, and other leading investors.
This investment comes at a time when the regularity clarity for crypto assets like stablecoins is increasing worldwide, with initiatives like the GENIUS Act in the U.S. allowing banks to issue stablecoins.
Citi is also exploring the possibility of issuing its own stablecoin and offering custody services for crypto assets. JPMorgan rolled out its own stablecoin-like token, JPMD, and started letting clients buy Bitcoin.
According to a previous report from Wall Street Journal, JPMorgan, Bank of America, Citi, and Wells Fargo are also exploring a joint stablecoin project. BNY Mellon is experimenting with tokenized deposits and HSBC has already launched its own tokenized deposit service.
Stablecoins were once mostly a niche tool for crypto trading. Today, they are gaining credibility as key infrastructure for moving money around the clock and providing real-time liquidity.
Citi said in a recent report that stablecoins are not just a trend, they are new digital rails that are faster, more flexible, and work alongside traditional banking systems. The report also noted that the role of banks is not disappearing, but evolving with these changes.
Citi has also raised its forecast for total stablecoin issuance to $1.9 trillion in the base case and $4 trillion in a bullish scenario.
Citi Ventures made a strategic investment in BVNK, a stablecoin infrastructure platform, to bridge traditional finance and digital assets. This supports BVNK’s global payments rail for seamless fiat-to-stablecoin transfers.
BVNK builds enterprise-grade tools for stablecoin payments, processing over $20 billion annually. It powers clients like Worldpay, Flywire, and dLocal, helping businesses handle cross-border transactions efficiently and securely.
Citi projects stablecoin issuance could reach $1.9 trillion in a base case or $4 trillion in a bull scenario by 2030, driven by e-commerce growth and blockchain adoption as new digital payment rails.
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