"Coinbase and Mastercard Battle for Stablecoin 'Rails' in $2.5B BVNK Talks"

Coinbase Global Inc. and Mastercard Inc. are engaged in advanced discussions to acquire London-based stablecoin infrastructure firm BVNK, with potential deal terms ranging from $1.5 billion to $2.5 billion, according to six sources familiar with the talks [1][2]. While no final agreement has been reached, Coinbase appears to hold an advantage over Mastercard in the current negotiations. If completed, the acquisition would represent the largest stablecoin-related deal to date, underscoring the growing integration of stablecoins into mainstream financial systems. Neither company has commented on the potential transaction.

BVNK, founded in 2021, specializes in facilitating cross-border transactions, customer payments, and treasury management through stablecoins-cryptocurrencies pegged to fiat currencies like the U.S. dollar. The firm raised $50 million in December 2024 at a $750 million valuation, with investors including Haun Ventures, Coinbase Ventures, and Tiger Global. Its technology enables near-instant, low-cost settlements, positioning it as a critical player in the rapidly expanding stablecoin ecosystem. The startup's clients include Worldpay, Flywire, and dLocal, and it processes over $20 billion annually in stablecoin transactions [1].

The potential acquisition reflects broader industry trends. Stablecoin transaction volumes have surged to nearly $9 trillion in the past year, driven by their efficiency in cross-border payments and regulatory clarity in jurisdictions like the U.S. and China Hong Kong. The U.S. Senate's passage of the Genius Act in June 2025, which established a federal regulatory framework for stablecoins, has further accelerated institutional adoption. This legislative development has prompted traditional financial institutions to reevaluate stablecoin integration, with Mastercard and Coinbase now competing to secure a leading position in the sector [2].

Mastercard's involvement in the talks highlights its strategic response to market shifts. The company's shares declined in June following news that Amazon and Walmart were exploring stablecoin initiatives, signaling heightened competition. Mastercard executives have previously downplayed stablecoins' threat, stating they would remain a niche tool for specific use cases. However, the firm's interest in BVNK suggests a more proactive stance. A successful acquisition would align with Mastercard's broader efforts to adapt to digital payment innovations [1].

Coinbase, meanwhile, has positioned itself as a key player in the stablecoin space through investments and partnerships. Its venture arm has backed BVNK since 2024, and the exchange's recent public statements emphasize its commitment to expanding stablecoin adoption. The acquisition would likely enhance Coinbase's infrastructure capabilities, enabling it to offer more comprehensive cross-border payment solutions. Analysts note that such a move could also strengthen Coinbase's competitive edge against rivals like Stripe, which acquired stablecoin startup Bridge for $1.1 billion in February 2025 [2].

The deal's outcome remains uncertain, as negotiations are still in their final stages. However, the high valuation reflects the strategic importance of stablecoin infrastructure in the evolving financial landscape. As traditional and digital finance converge, firms that control the rails of stablecoin transactions are poised to capture significant market share. The potential acquisition of BVNK by Coinbase or Mastercard would mark a pivotal moment in this transition, signaling the sector's maturation and institutional validation [1].

Source: [1] Fortune (https://fortune.com/crypto/2025/10/09/bvnk-acquisition-coinbase-mastercard-stablecoins/) [2] Coindesk (https://www.coindesk.com/business/2025/10/09/coinbase-and-mastercard-held-talks-to-buy-stablecoin-fintech-bvnk-for-up-to-usd2-5b-fortune)