Citi has taken a notable step deeper into the cryptocurrency sector by investing in BVNK, a stablecoin infrastructure company that helps move money seamlessly between fiat and digital currencies.
The London-based startup confirmed the investment to CNBC on Thursday, though it did not disclose the exact amount or its updated valuation.
BVNK’s co-founder Chris Harmse said the company’s valuation now exceeds the $750 million reported during its last funding round.
The investment was made through Citi Ventures, the venture capital arm of Citigroup.
Stablecoins — digital assets pegged to fiat currencies and backed by real-world assets — have become key players in the evolving financial system, offering fast and low-cost cross-border payment options.
The two most prominent examples are USDC and Tether’s USDT.
Stablecoins Gain Mainstream Momentum
According to Visa, nearly $9 trillion worth of stablecoin transactions have occurred in the past 12 months.
Meanwhile, CoinMarketCap data shows the total market capitalization of all stablecoins now exceeds $300 billion.
Once primarily used for crypto trading, stablecoins are increasingly viewed as tools for efficient international transfers and 24/7 settlements.
Harmse told CNBC that BVNK has been gaining traction in the U.S., which has become its fastest-growing market over the past 12 to 18 months.
The trend has been supported by what the crypto industry sees as a clearer regulatory landscape following the passage of the GENIUS Act earlier this year — legislation designed to provide oversight and structure to the stablecoin market.
“You are seeing with the GENIUS Act coming through, and regulatory clarity, an explosion of demand for building on top of stablecoin infrastructure,” Harmse said.
BVNK Expands as Wall Street Embraces Digital Assets
BVNK’s technology allows businesses to pay suppliers, contractors, and merchants globally using stablecoins.
The company is now looking to partner with digital-only banks and neobanks that may adopt stablecoins for core checking accounts.
While details of BVNK’s collaboration with Citi remain under wraps, Harmse noted it was “too early to announce” specifics.
However, he emphasized that major financial institutions like Citi are positioning themselves at the forefront of blockchain-based payment innovation.
“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,” he said.
Competition Heats Up Among Payment Innovators
BVNK faces strong competition from both established firms like Ripple and newcomers such as Alchemy Pay and TripleA.
The company, also backed by Coinbase and Tiger Global, has experienced fluctuations in profitability as it prioritizes expansion but expects to be profitable by next year.
Citi’s move follows similar initiatives from other Wall Street players.
JPMorgan Chase recently launched its own blockchain-based token, JPMD, while allowing clients to buy bitcoin.
HSBC has already introduced a tokenized deposit service, and Bank of New York Mellon is exploring similar digital deposit models.
These developments underscore a broader trend: major U.S. banks are no longer on the sidelines of crypto innovation — they are helping to shape its infrastructure.