Citigroup has taken another step into the world of digital finance. Through its venture arm, Citi Ventures, the U.S. banking giant has invested in BVNK, a fast-growing London fintech helping institutions move money across borders using stablecoins.
The deal underscores how quickly the line between traditional banking and blockchain-based finance is beginning to blur. BVNK, founded in 2021, builds infrastructure that lets businesses use stablecoins for payments, settlements, and treasury operations. While the company declined to reveal the size of Citi’s investment, insiders say its valuation has climbed past $750 million, supported by earlier funding from Coinbase, Tiger Global, and Visa.
A Banking Giant Bets on Blockchain
Citigroup’s latest move reflects the growing confidence among major financial institutions that stablecoins will underpin the next generation of global payments. In recent months, banks have ramped up their blockchain exposure following new clarity from U.S. regulators. The recently passed GENIUS Act, which formally defines how stablecoin issuers are overseen, has given Wall Street the green light to participate in this evolving market.
BVNK’s co-founder, Chris Harmse, said the U.S. has become the company’s most dynamic growth region, citing a surge in institutional interest since the new law’s passage. “We’re watching global banks position themselves at the center of the stablecoin economy,” he said, adding that demand for infrastructure to support tokenized dollars is “accelerating faster than anyone expected.”
Institutional Adoption Gains Pace
Citi’s involvement in BVNK follows a series of similar bets from major players eager to modernize payment systems. Earlier this year, CEO Jane Fraser confirmed that Citigroup was studying the feasibility of launching its own stablecoin and expanding crypto custody offerings. The bank also revised its long-term outlook for the sector, predicting that the stablecoin market could reach up to $4 trillion by the end of the decade – nearly doubling its earlier estimates.
Other financial heavyweights are taking note. Visa’s venture arm quietly joined BVNK’s investor list in May, months after the fintech secured $50 million in Series B funding led by Haun Ventures. With backing from both card networks and major banks, BVNK is positioning itself as one of the few bridge builders between fiat and blockchain payment systems.
Shifting Global Regulation
Outside the United States, regulators are rethinking their approach to stablecoins as adoption accelerates. In the United Kingdom, the Bank of England is reportedly reconsidering its proposal to cap corporate stablecoin holdings. The bank’s earlier draft, which limited firms to £10 million in reserves, drew backlash from the industry, prompting discussions about creating exemptions for liquidity providers and trading platforms.
The shift highlights a global effort to strike a balance between innovation and oversight. As stablecoins move from crypto niche to financial necessity, central banks are being forced to adapt faster than expected.
For Citi, the BVNK investment represents more than just another venture bet – it’s a signal that the future of payments will be built on stable, programmable digital money. With banks, fintechs, and regulators now aligned on the potential of tokenized value, the transformation of global finance is no longer a distant concept.
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