Citi Backs BVNK to Power Stablecoin-Driven Global Finance Shift

Citigroup's venture capital arm, Citi Ventures, has made a strategic investment in BVNK, a stablecoin infrastructure startup, signaling a significant step in the bank's deepening engagement with digital assets. The investment, disclosed by BVNK in October 2025, underscores growing institutional confidence in stablecoins as a tool for cross-border payments and financial innovation. While the exact amount and valuation of the investment remain undisclosed, BVNK co-founder Chris Harmse noted that the company's valuation now exceeds the $750 million reported in its previous funding round. This move aligns with broader trends as major U.S. banks increasingly embrace crypto, driven by regulatory clarity and evolving market dynamics.

BVNK's core technology functions as a payments rail for stablecoins, enabling seamless fiat-to-crypto conversions and global transactions. The platform processes over $20 billion annually for clients such as Worldpay, Flywire, and dLocal, facilitating instant, low-cost cross-border settlements. Harmse emphasized that the startup's infrastructure is particularly attractive to institutions seeking to leverage stablecoins for treasury management, supply chain payments, and neobank services. The company's agnostic approach to stablecoins-supporting assets like USDC and USDT-positions it to serve a diverse client base while adapting to regulatory and market shifts.

The investment environment for stablecoins has been bolstered by legislative developments, notably the U.S. GENIUS Act, which provides a regulatory framework for stablecoin issuance and operations. Harmse cited the Act as a catalyst for institutional adoption, stating that it has spurred "an explosion of demand for building on top of stablecoin infrastructure." Citi's move follows similar bets by Visa and other financial players, reflecting a broader industry shift. JPMorgan Chase, for instance, has launched its own stablecoin-like token (JPMD) and allows clients to trade bitcoin, while Bank of New York Mellon and HSBC are exploring tokenized deposits. These efforts highlight a growing consensus that stablecoins can enhance efficiency in traditional finance.

Citi's strategic pivot into stablecoins is part of a larger digital asset roadmap. CEO Jane Fraser has publicly discussed the bank's interest in issuing its own stablecoin and offering custodial services for crypto assets. In September 2025, Citi updated its stablecoin market forecast, projecting the sector could grow to $4 trillion by 2030-a significant increase from earlier estimates. The bank's research cited rapid adoption, regulatory progress, and the scalability of blockchain-based solutions as key drivers. This optimism is shared by other investors in BVNK, including Coinbase and Tiger Global, which have also positioned themselves at the intersection of traditional finance and crypto.

The competitive landscape for stablecoin infrastructure is intensifying, with BVNK facing rivals such as Alchemy Pay, TripleA, and Ripple. However, its partnerships with legacy financial institutions and focus on enterprise-grade solutions give it a distinct edge. Harmse noted that BVNK is expanding its client base to include digital-only banks, which are increasingly integrating stablecoins into their offerings. The startup's hybrid model-combining fiat on-ramps, multi-currency support, and compliance frameworks-addresses pain points for businesses navigating cross-border transactions. Citi's investment is expected to accelerate BVNK's growth, particularly in the U.S., where regulatory clarity and market demand are strongest.

Industry analysts view Citi's move as a pivotal moment in the convergence of traditional banking and digital assets. The bank's venture into stablecoins aligns with its broader strategy to modernize payment systems and capture new revenue streams. By backing BVNK, Citi is not only hedging against disruptive competition but also positioning itself to lead in a market projected to grow exponentially. As stablecoins evolve from speculative tools to foundational infrastructure, institutions like Citi are betting on their role in reshaping global finance.

Source: [1] Citi backs stablecoin firm BVNK as Wall Street warms to crypto (https://www.cnbc.com/2025/10/09/biti-bvnk-stablecoin-banks-crypto.html?msockid=15be1ab7df066e72390f0c37de986f0e)

[2] Citi Joins Visa in Backing Stablecoin Payments Company BVNK (https://www.coindesk.com/business/2025/10/09/citi-joins-visa-in-backing-stablecoin-payments-company-bvnk)

[3] Citi Ventures Invests in BVNK as Wall Street Accelerates ... (https://coinpedia.org/news/citi-ventures-invests-in-bvnk-as-wall-street-accelerates-stablecoin-adoption/)

[4] Citi invests in stablecoin firm BVNK as Wall Street deepens crypto ... (https://cointelegraph.com/news/citi-invests-in-bvnk-stablecoin-infrastructure-expansion)

[5] Citi's BVNK Investment Hedges Stablecoin Bet With Agnostic ... (https://finance.yahoo.com/news/citi-bvnk-investment-hedges-stablecoin-113215599.html)

[6] Citi's Bold Bet on Stablecoins Fuels Bank Crypto Surge (https://capwolf.com/citis-bold-bet-on-stablecoins-fuels-bank-crypto-surge/)

[7] Citi Bank Stablecoin Strategy Unveiled: Complete ... (https://www.stablecoininsider.com/citi-bank-stablecoin-strategy/)

[8] Citi Ventures Invests in BVNK to Power the Next Generation of ... (https://www.businesswire.com/news/home/20251009562874/en/Citi-Ventures-Invests-in-BVNK-to-Power-the-Next-Generation-of-Financial-Infrastructure)

[9] Citi backs stablecoin firm BVNK as Wall Street warms to crypto (https://www.cnbc.com/2025/10/09/biti-bvnk-stablecoin-banks-crypto.html?msockid=36d853697ff965961c0f45e97e7564f4)

[10] Citi Ventures backs BVNK in strategic investment to scale ... (https://bvnk.com/blog/citi-ventures-backs-bvnk)