Visa Doubles Down on Stablecoins With Investment in Blockchain Payments Firm BVNK

Global payments work supplier Visa's (V) task superior limb made a strategical concern successful BVNK, a startup gathering stablecoin-based outgo infrastructure, successful a determination that reflects bequest fiscal financial firms' propulsion into blockchain-powered wealth movement.

"Visa’s heavy expertise successful gathering planetary outgo networks, combined with our stablecoin infrastructure, creates almighty possibilities for redefining however businesses run successful today's integer economy," BVNK co-founder and CEO Jesse Hemson-Struthers wrote successful a blog post connected Wednesday.

A BVNK spokesperson confirmed successful an email that the woody has closed but declined to uncover the size of the investment.

BVNK builds bundle that allows businesses to nonstop and person stablecoins — crypto tokens pegged to fiat currencies similar the U.S. dollar — crossed planetary markets. The London-based institution said it’s already processing $12 cardinal successful annualized stablecoin volume, and has precocious expanded into the U.S. with offices successful New York and San Francisco. It has applied for licenses successful each U.S. states, securing support successful several.

The backdrop to this woody is simply a broader displacement successful finance. Blockchain rails and stablecoins person go progressively cardinal to payments, offering faster, cheaper alternate to accepted channels for uses similar remittances, payroll and commerce. Global firms are racing to leap connected the trend: Payments elephantine Stripe is testing a stablecoin instrumentality pursuing its $1.1 cardinal acquisition of Bridge; PayPal introduced its ain stablecoin; and Visa has developed a level to assistance banks contented stablecoins and tokenized assets.

"Stablecoins are accelerated becoming a portion of planetary outgo flows, and Visa invests successful caller technologies and builders similar BVNK, staying astatine the forefront of what’s adjacent successful commerce to amended service our clients and partners," said Rubail Birwadker, caput of maturation products and partnerships astatine Visa.

The concern follows BVNK's $50 cardinal fundraising circular past twelvemonth with backers including Haun Ventures and Tiger Global.

Read more: Stablecoins Could Bring 'ChatGPT' Moment to Blockchain Adoption, Hit $3.7T by 2030: Citi