Citi Ventures Backs Stablecoin Firm BVNK As Wall Street Deepens Crypto Push

Citigroup’s venture arm, Citi Ventures, has invested in BVNK, a London-based stablecoin infrastructure firm building global payment rails for digital assets.

BVNK declined to disclose the size of Citi’s investment or its current valuation. However, co-founder Chris Harmse told CNBC that the valuation now exceeds the $750 million reported at its last funding round. The firm is already backed by major investors, including Coinbase and Tiger Global.

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

He said BVNK’s strongest momentum comes from the US, its fastest-growing market over the past 18 months, as regulatory clarity improves. The recent passage of the GENIUS Act, a US bill providing clearer oversight of stablecoins, has spurred institutional confidence, he added.

Related: All currencies will be stablecoins by 2030: Tether co-founder

Wall Street banks double down on stablecoins

The move comes amid Wall Street’s growing adoption of blockchain-powered finance and the increasing use of stablecoins in global payment systems.

“US banks at the scale of Citi, because of the GENIUS Act, are putting their weight behind … investing in leading businesses in the space to make sure they are at forefront of this technological shift in payments,” Harmse said.

Citi has signaled deeper ambitions in digital assets this year. In July, CEO Jane Fraser said the bank is considering issuing its own stablecoin and offering custody services for crypto.

Citi is also bullish on stablecoins. In Sept., the bank raised its stablecoin market forecast, projecting the sector could reach $4 trillion by 2030 amid rapid adoption over the past six months. The bank set a base case of $1.9 trillion and a bull case of $4 trillion, up from earlier estimates of $1.6 trillion and $3.7 trillion.

In May, Visa invested an undisclosed sum in BVNK through its Visa Ventures arm. This came after the stablecoin infrastructure company closed a $50 million Series B funding round led by Haun Ventures last year.

Cointelegraph reached out to Citi for comment, but had not received a response by publication.

Related: Stablecoins will force ‘everyone’ to share yield: Stripe CEO

Bank of England to ease stablecoin holding limits

The Bank of England is reportedly reconsidering its proposed limits on corporate stablecoin holdings following strong industry opposition and mounting pressure to stay competitive with the United States.