Citigroup’s venture capital division, Citi Ventures, has invested in BVNK, a London-based stablecoin infrastructure company developing global payment rails for digital assets.
BVNK did not disclose the size of Citi’s investment or its current valuation. However, co-founder Chris Harmse told CNBC that the company’s valuation now surpasses the $750 million reported in its previous funding round. BVNK is already backed by prominent investors, including Coinbase and Tiger Global.
“You’re seeing an explosion of demand for building on top of stablecoin infrastructure,” Harmse said.
He noted that BVNK’s strongest growth comes from the U.S., its fastest-growing market over the past 18 months, as regulatory clarity improves. The recent passage of the GENIUS Act, a U.S. law providing clearer oversight of stablecoins, has boosted institutional confidence, he added.
Wall Street Banks Double Down on Stablecoins
Citi’s investment reflects Wall Street’s increasing adoption of blockchain-powered finance and the rising use of stablecoins in global payment systems.
“U.S. banks at the scale of Citi, because of the GENIUS Act, are putting their weight behind leading businesses in this space to ensure they remain at the forefront of this technological shift in payments,” Harmse said.
Citi has signaled stronger ambitions in digital assets this year. In July, CEO Jane Fraser revealed that the bank is exploring the issuance of its own stablecoin and offering custody services for cryptocurrencies.
The bank remains bullish on stablecoins. In September, Citi raised its market forecast for the sector, projecting it could reach $4 trillion by 2030, citing rapid adoption over the past six months. The bank now sets 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.
Earlier this year, in May, Visa invested an undisclosed sum in BVNK through its Visa Ventures arm, following the London-based stablecoin infrastructure firm’s $50 million Series B funding round led by Haun Ventures last year.
Bank of England Considers Easing Stablecoin Holding Limits
Meanwhile, the Bank of England is reportedly reconsidering its proposed limits on corporate stablecoin holdings, responding to strong industry opposition and pressure to remain competitive with the U.S.
The BoE had initially proposed caps of £20,000 (around $27,000) for individuals and £10 million for companies to mitigate systemic risks from widely used stablecoins such as USDT and USDC. The central bank is now exploring exemptions for crypto firms that require larger stablecoin reserves for trading and liquidity purposes.
