In a significant development within the financial technology landscape, Visa’s venture capital arm has made a strategic investment in BVNK, a startup that is pioneering stablecoin-based payment infrastructure. This move underscores the increasing interest of traditional financial institutions in blockchain technology and the transformative potential of digital currencies.
According to Jesse Hemson-Struthers, co-founder and CEO of BVNK, “Visa’s deep expertise in building global payment networks, combined with our stablecoin infrastructure, creates powerful possibilities for redefining how businesses operate in today’s digital economy.” This statement reflects a growing sentiment among legacy financial firms that recognize the need to adapt to a rapidly evolving market.
A spokesperson from BVNK has confirmed that the investment deal has closed, although specific financial details remain undisclosed. Importantly, BVNK’s innovative software enables businesses to seamlessly send and receive stablecoins—digital tokens tied to fiat currencies like the U.S. dollar—across global marketplaces. The London-based company is already processing an impressive $12 billion in annualized stablecoin volume and has recently expanded its footprint into the U.S., establishing offices in major cities such as New York and San Francisco. Furthermore, BVNK has sought licenses across all U.S. states, already securing approvals in several.
This investment comes at a time when the financial industry is experiencing a broader shift towards blockchain technology. Stablecoins have emerged as a vital component of modern payment systems, providing faster and more cost-effective alternatives to traditional payment channels. These developments are particularly relevant for applications such as remittances, payroll, and commercial transactions. Major global firms are increasingly jumping on this trend; for instance, payments giant Stripe is testing a stablecoin tool following its $1.1 billion acquisition of Bridge, while PayPal has introduced its own stablecoin.
Rubail Birwadker, head of growth products and partnerships at Visa, commented on the potential impact of stablecoins, stating, “Stablecoins are fast becoming a part of global payment flows, and Visa invests in new technologies and builders like BVNK, staying at the forefront of what’s next in commerce to better serve our clients and partners.” This investment aligns with Visa’s broader strategy to engage with emerging technologies that enhance payment solutions.
The investment follows BVNK’s recent $50 million fundraising round, which saw participation from prominent investors such as Haun Ventures and Tiger Global. The strategic alliance between Visa and BVNK marks a notable moment in the ongoing evolution of payment technologies and reflects the increasing importance of blockchain in the financial services sector.
For further insights, read more: Stablecoins Could Bring ‘ChatGPT’ Moment to Blockchain Adoption, Hit $3.7T by 2030: Citi
