Visa Invests in BVNK, Boosting Stablecoin Payment Infrastructure

Visa, a global leader in payments technology, has made a strategic investment in BVNK, a startup focused on developing stablecoin-based payment infrastructure. This move underscores the growing interest of traditional financial institutions in blockchain technology and its potential to revolutionize money movement.

BVNK's co-founder and CEO, Jesse Hemson-Struthers, highlighted the significance of this partnership, stating that Visa's expertise in global payment networks, combined with BVNK's stablecoin infrastructure, opens up new possibilities for businesses operating in the digital economy. The investment reflects a broader trend in the financial sector, where blockchain and stablecoins are increasingly seen as faster and cheaper alternatives to traditional payment methods for various uses, including remittances, payroll, and commerce.

BVNK's software enables businesses to send and receive stablecoins, which are cryptocurrency tokens pegged to fiat currencies like the U.S. dollar, across global markets. The company, based in London, has already processed $12 billion in annualized stablecoin volume and has recently expanded into the U.S. with offices in New York and San Francisco. BVNK has applied for licenses in all U.S. states and has secured approval in several.

This investment by Visa follows BVNK's $50 million fundraising round last year, which included backers such as Haun Ventures and Tiger Global. The strategic partnership aims to leverage Visa's extensive network and BVNK's innovative technology to stay at the forefront of commerce and better serve clients and partners. Rubail Birwadker, head of growth products and partnerships at Visa, emphasized that stablecoins are becoming an integral part of global payment flows, and Visa's investment in companies like BVNK is a testament to its commitment to embracing new technologies.

Global firms are increasingly recognizing the potential of blockchain and stablecoins. For instance, payments giant Stripe is testing a stablecoin tool following its acquisition of Bridge, while PayPal has introduced its own stablecoin. Visa has also developed a platform to help banks issue stablecoins and tokenized assets, further solidifying its position in the evolving financial landscape.