The U.S. crypto exchange Coinbase and the payments giant Mastercard are in advanced discussions to purchase BVNK, a London-based stablecoin firm. This potential acquisition reflects the increasing interest in stablecoins within the financial mainstream.
Details of the Acquisition Talks
Sources familiar with the negotiations suggest that the sale price for BVNK is estimated between $1.5 billion and $2.5 billion. Although no final agreement has been reached, Coinbase is reportedly leading the discussions ahead of Mastercard.
If finalized, this acquisition would represent the largest stablecoin deal to date. With stablecoins pegged to assets like the U.S. dollar growing in popularity, this move highlights the shift towards embracing digital currencies.
About BVNK and Its Growth
Founded in 2021 by Chris Harmse, Jesse Hemson-Struthers, and Donald Jackson, BVNK provides solutions for businesses to use stablecoins in various transactions. These include customer payments, cross-border transactions, and global treasury management.
- BVNK raised $50 million in December 2022, bringing its valuation to approximately $750 million.
- The funding round was led by Haun Ventures, with participation from Coinbase Ventures and Tiger Global.
- New investors included Visa and Citi’s venture arms.
Hemson-Struthers, in a previous interview, claimed BVNK as the “global leader” in stablecoin infrastructure. The firm boasts extensive banking connections and regulatory licenses essential for its operations.
The Impact of Stablecoins
Stablecoins have become increasingly significant within the cryptocurrency landscape, providing stability compared to more volatile options like Bitcoin and Ethereum. Advocates argue that stablecoins streamline payments, allowing transactions to occur swiftly and at lower costs than traditional methods.
The increase in venture funding for stablecoin startups underscores their growing appeal. Notable developments include the public offering of stablecoin issuer Circle and legislative actions like the Genius Act, aimed at creating regulatory frameworks for cryptocurrencies.
Mastercard’s Position and Perspective
Despite the surge in stablecoin popularity, Mastercard has emphasized that fiat currency remains vital to its business model. Raj Seshadri, Mastercard’s chief commercial payments officer, stated that stablecoins may serve specific use cases but are unlikely to replace traditional currency flows entirely.
As the conversations between Coinbase and Mastercard continue, the fintech landscape is poised for significant changes with the potential acquisition of BVNK. This move may influence how stablecoins are integrated into mainstream financial systems, reaffirming their position in the evolving digital economy.
