Almost a year after Stripe’s $1.1 billion acquisition of stablecoin startup Bridge, two major corporate players, Coinbase and Mastercard, are reportedly in advanced talks to acquire another stablecoin firm, London-based BVNK. Sources familiar with the negotiations, who spoke on the condition of anonymity, indicated that the discussions have centered around a sale price between $1.5 billion and $2.5 billion. While no final agreement has been made, some reports suggest that Coinbase might have the advantage over Mastercard in these negotiations.
Should a deal materialize, it would set a new record for stablecoin acquisitions, further underscoring the growing prominence of stablecoins—cryptocurrencies pegged to stable assets like the U.S. dollar—within the financial landscape. This potential acquisition of BVNK by Mastercard would signify the payments giant’s serious engagement with the rise of stablecoin technology, particularly in light of recent declines in its stock performance linked to the emergence of stablecoin initiatives from major retailers like Amazon and Walmart.
Founded in 2021, BVNK specializes in enabling companies to leverage stablecoins for a variety of applications, including customer transactions and cross-border payments. The startup raised $50 million in a funding round last December, giving it a valuation of approximately $750 million. That round, led by Haun Ventures with participation from Coinbase Ventures and Tiger Global, saw investments from other notable entities such as Visa’s and Citi’s venture arms.
Despite BVNK’s lower valuation compared to Bridge at the time, its co-founder, Jesse Hemson-Struthers, has previously characterized BVNK as a leader in stablecoin infrastructure, citing its extensive banking relationships and financial licenses. As stablecoin technology has gained traction, BVNK has stepped into a spotlight similar to that of Bridge, especially after the latter’s acquisition by Stripe led to new product developments like Open Issuance, allowing businesses to create their own stablecoins.
The traction gained by stablecoins has accelerated significantly, with venture funding pouring into stablecoin startups over the past year. Their advantages—speed and lower costs compared to traditional payment methods—have made them an attractive alternative, capable of facilitating transactions in seconds with minimal fees. Infrastructure providers like BVNK play a crucial role in bridging stablecoins and fiat currencies.
While investment in stablecoin initiatives continues to thrive, the emergence of regulatory frameworks, such as the Genius Act signed by President Donald Trump, indicates growing acknowledgment of the importance of stablecoins in the financial ecosystem.
Despite the challenges posed by stablecoins, Mastercard executives have expressed measured perspectives on their potential impact. Chief Commercial Payments Officer Raj Seshadri downplayed the threat, suggesting that fiat currencies will remain dominant, with stablecoins serving specific use cases rather than disrupting traditional flows entirely. As the negotiations around BVNK unfold, the financial community watches closely, aware that the outcome could significantly shape the future of payments and digital currencies.
