Citi Ventures, the investment branch of Citigroup, has made a financial commitment to BVNK, a firm based in London that focuses on stablecoin infrastructure and developing global payment systems for digital assets.
Although BVNK chose not to reveal the investment amount from Citi or its current valuation, co-founder Chris Harmse informed CNBC that the valuation now surpasses the $750 million noted in its previous funding round. The firm has already attracted prominent investors, including Coinbase and Tiger Global.
“There’s a significant surge in demand for building on stablecoin infrastructure,” Harmse mentioned to CNBC.
He pointed out that BVNK’s strongest growth is seen in the US, which has become its fastest-growing market in the last 18 months as regulatory clarity improves. The recent enactment of the GENIUS Act, a US legislation providing clearer guidelines for stablecoins, has enhanced institutional confidence, he added.
Related: Tether co-founder predicts all currencies will convert to stablecoins by 2030
Wall Street banks intensify focus on stablecoins
This development coincides with Wall Street’s rising acceptance of blockchain-driven finance and the expanding role of stablecoins in global payment frameworks.
“U.S. banks like Citi, due to the GENIUS Act, are strategically investing in key players within the industry to ensure they lead this technological evolution in payments,” Harmse stated.
This year, Citi has expressed greater ambitions in the realm of digital assets. In July, CEO Jane Fraser remarked that the bank is contemplating launching its own stablecoin and providing custody services for cryptocurrencies.
Citi maintains a positive outlook on stablecoins. In September, the bank upgraded its stablecoin market projection, estimating that the sector could hit $4 trillion by 2030, reflecting rapid growth over the preceding six months. The bank established a baseline of $1.9 trillion and an optimistic scenario of $4 trillion, up from previous estimates of $1.6 trillion and $3.7 trillion.
In May, Visa made an undisclosed investment in BVNK via its Visa Ventures division. This followed BVNK’s closure of a $50 million Series B funding round led by Haun Ventures the previous year.
Cointelegraph reached out to Citi for a statement but had not received a reply by the time of publication.
Related: Stripe CEO claims stablecoins will necessitate shared yield for all
Bank of England reconsiders stablecoin holding restrictions
According to reports, the Bank of England is revisiting its proposed limitations on stablecoin holdings by corporations due to significant opposition from the industry and increasing pressure to remain competitive with the United States.
Initially, the BoE suggested caps of 20,000 pounds (approximately $27,000) for individuals and 10 million pounds for businesses to reduce systemic risks posed by commonly used stablecoins like USDt (USDT) and USDC (USDC). However, the central bank is now considering exemptions for cryptocurrency firms that need higher stablecoin reserves for trading and liquidity needs.
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