Citigroup’s investment branch, Citi Ventures, has made a strategic investment in BVNK, a stablecoin infrastructure company based in London, enhancing global payment systems for digital assets.

BVNK chose not to reveal the investment amount or its present valuation, although co-founder Chris Harmse mentioned to CNBC that their valuation has surpassed the previous $750 million noted in their last funding round. The company is already backed by significant investors such as Coinbase and Tiger Global.

“You’re seeing an explosion of demand for building on top of stablecoin infrastructure,” Harmse conveyed to CNBC.

He indicated that BVNK’s most substantial growth is being driven by the United States, which has become their quickest growing market in the last year and a half as clarity in regulations improves. The recent enactment of the GENIUS Act, which provides clearer regulations for stablecoins in the U.S., has also contributed to building institutional confidence.

Wall Street Banks Increase Their Commitment to Stablecoins

This move aligns with Wall Street’s expanding adoption of blockchain-based finances, reflected by the growing utilization of stablecoins in international payment networks.

“US banks the size of Citi, due to the GENIUS Act, are backing investments in leading companies in the space to ensure they lead in this technological transformation in payments,” Harmse asserted.

Top stablecoins by market cap. Source: CoinMarketCap

Citi has revealed aspirations to deepen its ventures into digital assets this year. In July, CEO Jane Fraser announced that the bank is contemplating producing its own stablecoin and providing crypto custody services.

Citi’s outlook on stablecoins remains optimistic. In September, it revised its stablecoin market forecast, predicting that the sector could reach $4 trillion by 2030, citing rapid growth over the last six months. The bank’s base case now stands at $1.9 trillion, with a bullish perspective of $4 trillion, an increase from previous estimates.

In May, Visa also made an undisclosed investment in BVNK through its Visa Ventures division, following BVNK’s successful closure of a $50 million Series B funding round led by Haun Ventures last year.

Cointelegraph reached out to Citi for comments but did not receive a reply by the time of publication.

Bank of England to Reassess Stablecoin Holding Restrictions

Reportedly, the Bank of England is reconsidering its proposed limits on corporate stablecoin holdings due to considerable pushback from the industry and the need to remain competitive with the U.S. Initially, the Bank intended to establish caps for individuals at £20,000 (approximately $27,000) and for companies at £10 million to manage systemic risks linked to widely-used stablecoins like USDt and USDC. However, the central bank is contemplating exemptions for crypto firms that require more substantial stablecoin reserves for trading and liquidity.