Citi invests in stablecoin infrastructure firm BVNK…Wall Street accelerates entry into virtual assets

Citigroup said it has invested in stablecoin infrastructure startup BVNK, according to reports. Analysts say that large U.S. banks are beginning to enter the virtual assets (cryptocurrencies) and digital asset market in earnest thanks to eased regulatory conditions.

On the 9th (local time), CNBC reported that Citi's venture investment arm, Citi Ventures, recently made a strategic investment in BVNK. The specific investment amount and company valuation were not disclosed. BVNK plans to expand B2B payment services such as cross-border payments and supplier settlements based on this.

BVNK provides infrastructure for conversion and payments between fiat currencies and stablecoins, helping users worldwide remit and settle funds 24 hours a day at relatively low fees.

Chris Harmse, co-founder of BVNK, said, 'This investment was made at a valuation of more than $750 million disclosed in the previous round.' He also said, 'Clarity provided by the recently passed stablecoin regulatory bill, the 'GENIUS Act,' has caused infrastructure demand to explode.'

Meanwhile, BVNK has also attracted investments from Coinbase and Tiger Global, and aims to turn profitable next year.

The outlet added, 'JPMorgan launched its own stablecoin-like token 'JPMD' this year, and BNY Mellon and HSBC are also introducing tokenized deposit services, accelerating the adoption of digital asset technologies across Wall Street.'