Visa’s venture capital division has recently made a strategic investment in BVNK, a startup dedicated to developing infrastructure for payments using stablecoins. This move highlights the increasing trend of conventional financial institutions venturing into blockchain technology for money transfers.
“Visa’s vast experience in creating global payment networks, together with our stablecoin framework, opens up remarkable opportunities to reshape business operations in the digital economy today,” wrote BVNK co-founder Jesse Hemson-Struthers in a blog post.
A spokesperson for BVNK confirmed that the deal is finalized but withheld specific investment figures. The company specializes in software that facilitates the transfer and receipt of stablecoins—cryptocurrencies tied to traditional currencies—across worldwide markets. BVNK asserts that it handles around $12 billion in annual stablecoin transactions and has recently launched into the U.S., establishing offices in New York and San Francisco. It has also applied for licenses across all U.S. states, securing several approvals.
This investment aligns with a macroeconomic shift where blockchain technology and stablecoins are increasingly becoming vital components of financial transactions, providing quicker and more cost-effective alternatives over traditional systems for various applications such as remittances, payroll, and commerce. Major businesses are eager to capitalize on this trend; for instance, payments platform Stripe is currently exploring a stablecoin tool after acquiring Bridge for $1.1 billion. Moreover, PayPal has rolled out its own stablecoin, while Visa is developing a platform to assist banks in issuing stablecoins and tokenized assets.
“Stablecoins are becoming integral to global payment systems, and with investments in innovators like BVNK, Visa aims to be at the forefront of future commerce developments to better serve its clients and partners,” stated Rubail Birwadker, Visa’s head of growth products and partnerships.
This funding comes in the wake of BVNK’s $50 million fundraising round last year, which included investments from backers such as Haun Ventures and Tiger Global.
