Citigroup’s venture capital arm has invested in BVNK, a London-based company that builds infrastructure for stablecoin payments.
The move signals that major banks are doubling down on digital dollar technology as new U.S. regulations make it easier for traditional finance to enter the crypto space.
The investment, announced October 9, 2025, came through Citi Ventures. While the exact dollar amount remains undisclosed, BVNK co-founder Chris Harmse confirmed the company’s valuation now exceeds $750 million—higher than its previous funding round.
What BVNK Does
BVNK operates as a payment rail for stablecoins, which are digital currencies designed to maintain a steady value by being pegged to traditional money like the U.S. dollar. The company’s platform lets businesses move money between regular currency and stablecoins, making it easier to send payments across borders.
The firm processes over $20 billion annually for major clients including Worldpay, Flywire, and dLocal. Founded in October 2021, BVNK has grown quickly by focusing on enterprise customers rather than individual users.
Source:@BVNKFinance
“This investment reinforces our mission to accelerate the global movement of money,” said Jesse Hemson-Struthers, BVNK’s co-founder and CEO. The company now supports payments in more than 130 countries.
Why Stablecoins Matter
Stablecoins have evolved from a niche crypto tool into a serious payment technology. According to Visa data, nearly $9 trillion worth of stablecoin transactions occurred in the past year. The total market value of all stablecoins now tops $300 billion.
These digital dollars offer several advantages over traditional banking: they work 24/7, settle almost instantly, and cost less for cross-border transfers. Companies can pay suppliers overseas without waiting days for bank wires to clear or losing money to exchange rate fluctuations.
Citi sees massive growth ahead. The bank revised its stablecoin forecast in September 2025, predicting the market could reach $1.9 trillion by 2030 in a base scenario, or as much as $4 trillion if adoption accelerates faster than expected.
The Regulatory Breakthrough
The timing of Citi’s investment isn’t random. In June 2025, the U.S. Senate passed the GENIUS Act with a 68-30 vote. This legislation created the first federal framework for stablecoin regulation in the United States.
The law requires stablecoin issuers to hold actual dollars or liquid assets to back every digital token they create, maintaining a one-to-one ratio. It also clarifies that stablecoins aren’t securities, giving banks clearer rules for working with them.
“You are seeing with the GENIUS Act coming through, and regulatory clarity, an explosion of demand for building on top of stablecoin infrastructure,” Harmse told CNBC. The U.S. has become BVNK’s fastest-growing market over the past 12-18 months.
BVNK now offers services across all 50 U.S. states and recently opened offices in San Francisco and New York. Former BlockFi executive Amit Cheela and former Cross River executive Keith Vander Leest lead the company’s American operations.
Citi’s Bigger Crypto Strategy
This investment fits into Citi’s broader digital asset plans. CEO Jane Fraser revealed in July 2025 that the bank is considering launching its own stablecoin. She also said Citi wants to offer custody services for crypto assets and help clients convert between traditional money and digital currencies.
“We really welcome the administration’s willingness to allow banks to participate in the digital asset space more easily,” Fraser said during an earnings call. “Up until now, it has been hard for us to participate on a level playing field.”
The bank’s services division is exploring custody for the Treasury bonds and other assets that back stablecoins. With crypto exchange-traded funds growing rapidly—BlackRock’s bitcoin ETF holds over $90 billion—banks see opportunity in providing secure storage for these digital assets.
Arvind Purushotham, Head of Citi Ventures, praised BVNK’s proven track record: “Stablecoins are seeing increased interest in use for settlement of on-chain and crypto asset transactions. We were impressed by BVNK’s enterprise-grade infrastructure.”
Citi isn’t working alone. The Wall Street Journal reported earlier this year that JPMorgan Chase, Bank of America, and Wells Fargo are also exploring potential stablecoin initiatives.
Wall Street Goes Digital
JPMorgan launched JPMD, its own stablecoin-like deposit token, in 2025. The token runs on Coinbase’s Base blockchain and handles institutional transactions with features like round-the-clock settlement and interest payments.
Bank of New York Mellon is examining tokenized deposits, while HSBC has already launched a tokenized deposit service. These moves show that banks are racing to adapt before fintech companies capture too much of the digital payments market.
BVNK competes with newer players like Alchemy Pay and TripleA, plus established companies like Ripple. But the firm has backing from heavyweight investors. Visa Ventures invested in May 2025, following BVNK’s $50 million Series B round in December 2024 led by Haun Ventures. Coinbase Ventures and Tiger Global also hold stakes.
The company has built partnerships with major payment processors. In June 2025, dLocal teamed up with BVNK to enable stablecoin payouts across more than 40 emerging markets. Worldpay is piloting a stablecoin payout service with BVNK for businesses in the U.S. and Europe, set to launch in the second half of 2025.
BVNK recently released Smart Treasury, an AI-powered system that manages stablecoin liquidity automatically across different blockchain networks. This type of innovation shows how traditional financial tools are being rebuilt for digital currency operations.
Harmse said BVNK has “dipped in and out of profitability” while investing in growth but expects to turn consistently profitable next year.
The Bottom Line
Citi’s investment in BVNK marks another step in Wall Street’s transition from crypto skepticism to active participation. With clear regulations now in place and stablecoin transaction volumes soaring, major banks are positioning themselves in a market that could reshape how money moves globally. For Citi, backing BVNK means gaining a foothold in payment technology that operates at internet speed rather than banking hours.