Stablecoins' Rise Drives $2.5B Acquisition Race: Coinbase and Mastercard Vie for BVNK

Coinbase and Mastercard are engaged in competitive talks to acquire London-based stablecoin infrastructure firm BVNK, according to multiple sources. The potential deal, valued between $1.5 billion and $2.5 billion, would mark the largest stablecoin acquisition to date and underscore the growing influence of stablecoins in mainstream finance [1]. While no final agreement has been reached, Coinbase is currently considered the frontrunner in the negotiations [1]. BVNK, founded in 2021, specializes in facilitating cross-border payments, corporate treasuries, and stablecoin-to-fiat conversions for enterprise clients. Its technology enables businesses to transact in stablecoins-digital assets pegged to traditional currencies like the U.S. dollar-offering faster and lower-cost alternatives to conventional payment systems [1].

The startup has rapidly expanded its footprint, processing over $20 billion annually for clients including Worldpay, Flywire, and dLocal. In December 2024, BVNK raised $50 million in a funding round led by Haun Ventures, valuing the company at approximately $750 million [1]. Recent investments from Visa and Citi's venture arms further validate its market position. Citi's participation, announced in October 2025, has pushed BVNK's valuation above $750 million, according to co-founder Chris Harmse [3]. The firm now operates in 130 countries and has opened offices in San Francisco and New York to capitalize on the U.S. market's rapid growth [3].

Stablecoins have emerged as a critical segment of the crypto industry, with global transaction volumes reaching nearly $9 trillion in the past year, per Visa data [3]. Proponents highlight their 24/7 availability, instant settlement, and cost efficiency for cross-border transactions. The regulatory landscape has also shifted favorably, particularly in the U.S., where the GENIUS Act passed in June 2025. This legislation established a federal framework requiring stablecoin issuers to maintain a one-to-one ratio of assets to tokens, clarifying their non-securoty status and encouraging institutional participation [3].

Mastercard, whose shares declined in June amid Amazon and Walmart's stablecoin initiatives, has cautiously approached the technology. Raj Seshadri, the company's chief commercial payments officer, stated in July that stablecoins would remain "one more currency" for niche use cases, downplaying their threat to traditional payment networks [1]. However, the firm's interest in acquiring BVNK suggests a strategic pivot to counter growing competition from fintech players and banks. Similarly, Coinbase's pursuit of the startup aligns with its broader strategy to solidify dominance in the stablecoin infrastructure sector, following its earlier role in founding Bridge, a rival firm acquired by Stripe in 2024 for $1.1 billion [1].

The acquisition race reflects broader trends in Wall Street's embrace of crypto. JPMorgan, Bank of America, and Wells Fargo are also exploring stablecoin initiatives, while Citi announced plans to launch its own stablecoin and expand custody services for digital assets [3]. These moves signal a shift from skepticism to active participation as banks seek to leverage stablecoins for faster, cheaper transactions. BVNK's Smart Treasury platform, an AI-driven liquidity management tool, further demonstrates the sector's innovation potential [3].

While the outcome of the acquisition talks remains uncertain, the competition between Coinbase and Mastercard highlights the strategic value of stablecoin infrastructure. With regulatory clarity and growing institutional demand, the sector is poised for expansion. BVNK's co-founder Jesse Hemson-Struthers emphasized the firm's role in "accelerating the global movement of money," noting its focus on enterprise clients and profitability targets for 2026 [3]. As major financial players continue to stake their claims, the stablecoin market-now valued at over $300 billion-may redefine global payment systems in the coming years [3].

Source: [1] Fortune (https://fortune.com/crypto/2025/10/09/bvnk-acquisition-coinbase-mastercard-stablecoins/)

[2] Yahoo Finance (https://finance.yahoo.com/news/exclusive-coinbase-mastercard-both-held-211222814.html)

[3] Brave New Coin (https://bravenewcoin.com/insights/citi-invests-in-stablecoin-firm-bvnk-as-wall-street-deepens-crypto-push)

[4] CNBC (https://www.cnbc.com/2025/10/09/biti-bvnk-stablecoin-banks-crypto.html?msockid=0ae32056346b610938c436d635ba6027)