Coinbase and Mastercard are in advanced talks to acquire BVNK, a London-based stablecoin firm, in a deal valued between $1.5 billion and $2.5 billion. This acquisition, if finalised, would mark the largest stablecoin acquisition to date, highlighting the growing mainstream acceptance of stablecoins.
The Race for BVNK
The competition between Coinbase and Mastercard to acquire BVNK is fierce, with Coinbase reportedly having the upper hand. BVNK, founded in 2021 by Chris Harmse, Jesse Hemson-Struthers, and Donald Jackson, has quickly positioned itself as a leader in stablecoin infrastructure. The firm enables companies to use stablecoins for various applications, including customer transactions and cross-border payments.
BVNK’s recent $50 million funding round, led by Haun Ventures with participation from Coinbase Ventures and Tiger Global, valued the startup at $750 million. The firm’s connections with major financial players like Visa and Citi underscore its potential and attractiveness as an acquisition target.
Stablecoin Surge and Regulatory Shifts
The stablecoin sector has seen significant growth, with startups securing hundreds of millions in venture funding. The recent enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act by President Donald Trump has further fueled interest. This legislation provides a regulatory framework for USD-pegged stablecoins, mandating strict reserve and transparency requirements.
Stablecoins offer faster and cheaper alternatives to traditional payment methods, a factor driving their popularity. The total stablecoin market cap has surged from $260 billion to $304 billion since the GENIUS Act’s introduction, according to DeFiLlama. Financial giants like Mastercard are increasingly recognising the potential of stablecoins, despite some executives downplaying their impact on traditional financial systems.
For more information on the GENIUS Act, visit here and for stablecoin market data, see DeFiLlama.
*Disclaimer: This article is for informational purposes only and does not constitute financial advice.*
