Connect with us

Business

Coinbase and Mastercard Compete for $2.5B Stablecoin Startup BVNK

Published

on

Coinbase Mastercard Bvnk Acquisition

London, England — Coinbase and Mastercard are in advanced negotiations to acquire the London-based stablecoin infrastructure company BVNK, according to multiple anonymous sources familiar with the discussions. If finalized, the acquisition could be valued between $1.5 billion and $2.5 billion.

The negotiations, still ongoing, suggest that Coinbase holds a slight lead over Mastercard in this competitive bid, although no official statements have been released by either company regarding the potential deal.

Founded in 2021 by Chris Harmse, Jesse Hemson-Struthers, and Donald Jackson, BVNK provides businesses with technology to facilitate stablecoin payments and cross-border transactions. The company raised $50 million in funding in December 2024, which valued it at approximately $750 million.

“Our technology allows for faster and more cost-effective transactions,” Hemson-Struthers previously stated in an interview. BVNK’s services enable companies to integrate stablecoins into their operations, aiming to offer solutions beyond traditional banking methods like SWIFT.

The stablecoin sector has garnered significant interest, surpassing a market capitalization of $300 billion, driven by the demand for faster, blockchain-based transactions. Financial giants like Mastercard, whose shares fell in June, are acknowledging the importance of stablecoins to stay competitive in the evolving payments landscape.

If the acquisition proceeds, it would surpass last year’s $1.1 billion acquisition of Bridge, another stablecoin firm, by Stripe. Analysts see BVNK’s technology as crucial for stablecoin adoption, which is becoming more mainstream as regulatory frameworks materialize in the U.S. and Europe.

While Mastercard executives have expressed concerns about stablecoins potentially bypassing traditional payment networks, they have also recognized the necessity of adapting to these digital currencies. Raj Seshadri, Chief Commercial Payments Officer at Mastercard, noted that stablecoins could serve specific use cases alongside fiat currencies.

The outcome of the bidding war for BVNK could significantly influence the future dynamics between traditional financial institutions and emerging fintech companies focusing on stablecoin integration.