Stablecoins Drive Payments Revolution as Coinbase, Mastercard Ink $2B Deal

Coinbase Global Inc. and Mastercard Inc. are in advanced negotiations to acquire London-based stablecoin infrastructure firm BVNK for approximately $2 billion, according to multiple sources familiar with the discussions. The potential deal, if finalized, would mark the largest stablecoin acquisition to date and signal growing institutional confidence in the sector. The companies have not commented on the talks, but sources indicate Coinbase currently holds the advantage in the bidding process. The transaction remains conditional, with terms yet to be finalized.

BVNK, founded in 2021, specializes in enabling cross-border payments, treasury management, and financial infrastructure through stablecoins. The company raised $50 million in December 2024 in a funding round led by Haun Ventures, with participation from Coinbase Ventures, Tiger Global, and Visa. Its valuation at that time was approximately $750 million, though co-founder Chris Harmse recently told CNBC that BVNK's current valuation exceeds that figure. The firm's client base includes major financial institutions, fintechs, and enterprises seeking to streamline transactions using dollar-pegged tokens.

The acquisition aligns with broader trends in the stablecoin market, which has attracted significant investment and regulatory attention in 2025. Stablecoins-cryptocurrencies pegged to fiat assets like the U.S. dollar-have gained traction for their ability to facilitate near-instant, low-cost cross-border payments. The U.S. Senate's passage of the GENIUS Act in June, which establishes a regulatory framework for stablecoins, has further accelerated institutional adoption. Meanwhile, the June 2025 public offering of Circle Internet Financial, a leading stablecoin issuer, underscored market confidence in the asset class.

Mastercard's involvement in the potential deal highlights the payments giant's strategic pivot toward blockchain-based solutions. The company has previously announced support for stablecoins on its Multi-Token Network and has invested in BVNK through its Visa Ventures arm. Rubail Birwadker, Visa's Head of Growth Products and Partnerships, emphasized in a recent Forbes interview that stablecoins represent "the next chapter of global payments." Mastercard's shares fell in June following news of Amazon and Walmart exploring stablecoin initiatives, underscoring competitive pressures in the sector.

Coinbase, which has integrated stablecoins into its cross-border payment and merchant onboarding services, has also positioned itself as a key player in the space. Jesse Pollak, head of base and wallet at Coinbase, noted in a CNBC interview that stablecoins are entering a "utility phase," where their speed, cost efficiency, and ease of use drive real-world adoption. The company's recent partnerships with Shopify and other e-commerce platforms to enable USDC-based transactions reflect its broader strategy to expand stablecoin usage.

Analysts suggest the acquisition could reshape the payments landscape by consolidating stablecoin infrastructure under major financial players. Citigroup, which has invested in BVNK, projects the stablecoin market could reach $4 trillion by 2030, up from its current $250 billion in circulation. The firm's July 2025 forecast cited improved regulatory clarity and growing demand for instant settlement as key drivers. Meanwhile, JPMorgan and other banks have launched tokenized solutions, such as JPM Coin, to compete with stablecoin-driven innovations.

The potential deal also raises questions about regulatory oversight and systemic risks. The Bank of England is reportedly reconsidering proposed caps on stablecoin holdings after industry pushback, while the Financial Stability Board (FSB) continues to evaluate risks to monetary sovereignty and financial stability. Despite these challenges, proponents argue stablecoins offer a more efficient alternative to traditional payment rails, which often rely on correspondent banking and take days to settle.

[1] Exclusive: Coinbase and Mastercard have both held advanced ... (https://fortune.com/crypto/2025/10/09/bvnk-acquisition-coinbase-mastercard-stablecoins/)

[2] Coinbase and Mastercard in talks to acquire stablecoin startup ... (https://cryptobriefing.com/coinbase-mastercard-bvnk-stablecoin-acquisition/)

[3] Stablecoins go mainstream: Why banks and payment firms are ... (https://www.cnbc.com/2025/06/28/stablecoin-visa-mastercard-circle-jpmorgan.html?msockid=1aa67fd419ba6379233a6954180b6299)

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

[5] Visa Makes Key BVNK Investment In "Powerful ... (https://www.forbes.com/sites/danielwebber/2025/05/06/visa-invests-in-bvnk-in-powerful-validation-of-stablecoins-future/)

[6] Considerations for the use of stablecoin arrangements in cross ... (https://www.bis.org/cpmi/publ/d220.htm)