EddieJayonCrypto
9 Oct 25
Citigroup's investment in BVNK highlights the surge of stablecoins in finance, backed by regulatory shifts and institutional bets on a $4T market by 2030.
**Citi Invests in BVNK as Wall Street Banks Bolster Stablecoin Ambitions** Citigroup’s venture arm, Citi Ventures, has made a strategic move into the stablecoin sector by investing in BVNK, a London-based infrastructure firm specializing in global payment rails for digital assets. The investment underscores the growing influence of stablecoins in modern finance and the increasing confidence of traditional financial institutions in blockchain technology. BVNK, which previously secured funding from major investors like Coinbase and Tiger Global, has seen its valuation surpass the $750 million mark, according to co-founder Chris Harmse. While the exact size of Citi’s investment and BVNK’s current valuation remain undisclosed, Harmse highlighted the surge in demand for stablecoin infrastructure, noting that “you’re seeing an explosion of demand for building on top of stablecoin infrastructure.” The U.S. regulatory landscape has played a pivotal role in this momentum. The recent passage of the GENIUS Act, a bill aimed at providing clearer oversight of stablecoins, has bolstered institutional confidence. Harmse attributed BVNK’s strongest growth to the U.S. market, where improved regulatory clarity has fueled adoption. “US banks at the scale of Citi are putting their weight behind... investing in leading businesses in the space to make sure they are at the forefront of this technological shift in payments,” he said. Citi’s interest in stablecoins extends beyond investment. CEO Jane Fraser recently signaled the bank’s consideration of issuing its own stablecoin and offering crypto custody services. The bank has also raised its projections for the stablecoin market, forecasting it could reach $4 trillion by 2030—a significant jump from earlier estimates of $1.6 trillion to $3.7 trillion. The trend is not limited to Citi. In May, Visa invested in BVNK through its Visa Ventures arm, following a $50 million Series B funding round led by Haun Ventures. This aligns with broader industry efforts to integrate stablecoins into global payment systems, driven by their stability and efficiency compared to volatile cryptocurrencies. Meanwhile, regulatory developments in the U.K. are shaping the stablecoin landscape. The Bank of England initially proposed caps on corporate stablecoin holdings—$27,000 for individuals and $10 million for companies—to mitigate systemic risks. However, following industry pushback and pressure to remain competitive with the U.S., the central bank is now considering exemptions for crypto firms requiring larger reserves for trading and liquidity. As traditional finance and blockchain continue to converge, investments like Citi’s in BVNK reflect a broader shift toward stablecoins as a cornerstone of digital asset infrastructure. With regulatory frameworks evolving and institutional players accelerating their adoption, the stablecoin sector is poised for transformative growth in the coming years. *Note: Citi did not respond to requests for comment at the time of publication.*