Citi Backs BVNK as Stablecoins Cement Role in Global Payments

Citi Ventures, the venture capital arm of Citigroup, has made a strategic investment in BVNK, a stablecoin infrastructure platform, as global demand for cross-border digital payments accelerates. The undisclosed investment, announced in October 2025, underscores Wall Street's growing embrace of stablecoins as a tool for fast, low-cost transactions. BVNK's technology functions as a payments rail, enabling businesses to convert fiat currency into stablecoins and back, with the company processing over $20 billion in annual transactions for clients such as Worldpay, Flywire, and dLocal .

The move aligns with broader regulatory developments in the United States, where the passage of the GENIUS Act in 2025 has provided clearer oversight for stablecoins. This legislation has spurred institutional confidence, with Citi Ventures' head, Arvind Purushotham, noting increased interest in stablecoins for on-chain settlements . BVNK co-founder Chris Harmse highlighted that the company's valuation has surpassed $750 million, up from its last disclosed round, as regulatory clarity and market demand drive growth .

Citi's investment follows similar moves by traditional financial institutions. Visa Ventures invested in BVNK earlier in 2025, while other major players like Coinbase and Tiger Global have also backed the firm. Harmse emphasized that Citi's involvement reflects the bank's strategy to position itself at the forefront of the "technological shift in payments," particularly as stablecoins gain traction for cross-border commerce . Citi CEO Jane Fraser has publicly signaled the bank's intent to issue its own stablecoin and offer custodian services for crypto assets, aligning with broader industry trends .

Citi's optimism is reflected in its revised forecasts for the stablecoin market. In September 2025, the bank raised its 2030 issuance projection to a base case of $1.9 trillion and a bull case of $4 trillion, citing rapid adoption and regulatory progress. The firm noted that stablecoin settlement volumes could reach nearly $10 trillion annually by 2030, driven by their efficiency and 24/7 availability . This growth is supported by the expansion of stablecoin infrastructure, with BVNK competing against platforms like Alchemy Pay and Ripple in a market increasingly dominated by institutional players .

The investment also highlights the competitive landscape among global financial institutions. JPMorgan Chase has launched its own stablecoin-like token (JPMD), while Bank of New York Mellon and HSBC are exploring tokenized deposits. Citi's move to strengthen its cross-border payment capabilities through BVNK positions it to capitalize on the sector's evolution, particularly as the U.S. emerges as a regulatory and technological leader .

BVNK's technology, which supports stablecoins like USDC and USDT, addresses pain points in traditional cross-border transactions, including high fees and delays. The company's expansion into digital-only banks and neobanks further underscores its potential to integrate stablecoins into mainstream financial services. With Citi's backing, BVNK aims to accelerate its growth trajectory, having previously navigated periods of profitability and reinvestment .

The strategic alignment between Citi and BVNK reflects a broader shift in the financial sector, where stablecoins are no longer viewed as speculative assets but as foundational tools for modernizing global payments. As regulatory frameworks mature and institutional adoption deepens, the role of stablecoins in cross-border commerce is expected to expand significantly, with Citi and other major banks playing pivotal roles in shaping the ecosystem .

Source: [1] CNBC (https://www.cnbc.com/2025/10/09/biti-bvnk-stablecoin-banks-crypto.html)

[2] Coindesk (https://www.coindesk.com/business/2025/10/09/citi-joins-visa-in-backing-stablecoin-payments-company-bvnk)

[3] Morningstar (https://www.morningstar.com/news/business-wire/20251009562874/citi-ventures-invests-in-bvnk-to-power-the-next-generation-of-financial-infrastructure)

[7] Cointelegraph (https://cointelegraph.com/news/citi-forecasts-4-trillion-stablecoin-2030)