GENIUS Act Spur: Coinbase and Mastercard's $2.5B Stablecoin Power Struggle

Coinbase and Mastercard are engaged in an advanced bidding contest to acquire London-based stablecoin infrastructure firm BVNK, with the potential deal valued between $1.5 billion and $2.5 billion, according to multiple sources. The transaction, if finalized, would represent the largest stablecoin acquisition to date, surpassing Stripe's $1.1 billion purchase of Bridge in 2024. While neither company has publicly confirmed the discussions, sources indicate Coinbase currently holds a lead in negotiations, though the talks remain unfinalized.

BVNK, founded in 2021, provides stablecoin payment solutions for enterprises, including cross-border transactions and treasury management. Its clients include Worldpay, Flywire, and dLocal, and it processes over $20 billion annually. The firm recently secured a strategic investment from Citi Ventures, reflecting growing institutional interest in stablecoin infrastructure. This surge aligns with the U.S. passage of the GENIUS Act in July 2025, which established regulatory clarity for dollar-pegged stablecoins, fostering institutional adoption and market confidence.

The stablecoin market has reached a milestone, with a total capitalization exceeding $300 billion, signaling maturation in the sector. BVNK's technology enables instant settlements and lower fees compared to traditional systems like SWIFT or card networks, addressing a critical gap in global payments. Its value proposition has drawn attention from both crypto-native and traditional financial players. For Coinbase, acquiring BVNK would expand its enterprise infrastructure and solidify its position in the stablecoin ecosystem, complementing its existing partnership with Circle, the issuer of USDC. Mastercard, meanwhile, seeks to integrate stablecoin payment systems to counter emerging crypto solutions that bypass traditional card networks.

Regulatory developments have accelerated the sector's growth. The GENIUS Act, signed by President Trump, provides a federal framework for stablecoin issuers, clarifying distinctions between stablecoins and bank deposits. This legislation has spurred demand for stablecoin adoption among banks and fintechs, with institutions like Citigroup and Visa investing in BVNK. Citigroup's recent investment, though undisclosed in size, underscores the firm's valuation exceeding $750 million from prior funding rounds. The Bank of England is also reconsidering proposed stablecoin holding limits amid industry pressure, reflecting global regulatory shifts.

Market dynamics suggest stablecoins are reshaping financial infrastructure. Visa data indicates stablecoin transactions reached $9 trillion over the past year, while JPMorgan predicts the market could grow to $4 trillion by 2030. However, challenges remain, including consumer protection concerns and potential impacts on traditional banking. The GENIUS Act prohibits stablecoin issuers from paying interest, a measure aimed at preventing deposit erosion for banks. Critics argue this creates a regulatory loophole, allowing exchanges to offer rewards on stablecoin holdings, potentially diverting funds from traditional banking systems.

The outcome of the BVNK acquisition could reshape how stablecoins integrate into both crypto and traditional financial systems. For Coinbase, the deal would enhance its role in the stablecoin value chain, from issuance to enterprise distribution. Mastercard's interest highlights the payments giant's strategic pivot to retain relevance amid evolving digital payment trends. As the stablecoin market continues to expand, regulatory clarity and institutional adoption will remain pivotal in determining the sector's trajectory.

[1] The Block (https://www.theblock.co/post/374100/coinbase-mastercard-stablecoin-bvnk)

[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)

[3] Bankless Times (https://www.banklesstimes.com/articles/2025/10/10/coinbase-mastercard-eye-2b-acquisition-of-stablecoin-firm-bvnk/)

[4] CoinCentral (https://coincentral.com/coinbase-and-mastercard-compete-to-acquire-stablecoin-firm-bvnk-for-up-to-2-5-billion/)

[5] Fortune (https://fortune.com/crypto/2025/10/09/bvnk-acquisition-coinbase-mastercard-stablecoins/)

[6] Arnold & Porter (https://www.arnoldporter.com/en/perspectives/advisories/2025/07/new-stablecoin-legislation-analyzing-the-genius-act)

[7] World Economic Forum (https://www.weforum.org/stories/2025/07/stablecoin-regulation-genius-act/)

[8] Holder.io (https://holder.io/news/citi-invests-in-bvnk-stablecoin-platform/)

[9] Yahoo Finance (https://finance.yahoo.com/news/citibank-backs-stablecoin-firm-bvnk-095153172.html)

[10] CoinMarketCap (https://blockinsider.com/crypto/citibank-invests-in-stablecoin-enterprise-bvnk-reports-suggest/)

[11] Wired (https://www.wired.com/story/genius-act-loophole-stablecoins-banks/)

[12] PYMNTS (https://www.pymnts.com/cryptocurrency/2025/stablecoin-market-grows-42-in-wake-of-genius-act/)