Nearly a year after fintech giant Stripe finalized a $1.1 billion acquisition of stablecoin startup Bridge, two other major players are also eyeing the stablecoin market. U.S. crypto exchange Coinbase and payments leader Mastercard are reportedly in advanced discussions to acquire London-based BVNK, according to six sources familiar with the matter who requested anonymity for confidential discussions.
Although the exact terms of the deal remain undecided, sources suggest that the sale price could fall between $1.5 billion and $2.5 billion. While discussions may not finalize, Coinbase seems to have an advantage over Mastercard, according to three sources speaking to Fortune.
If an agreement is made, it would mark the largest stablecoin acquisition to date, illustrating that stablecoins—cryptocurrencies tied to assets like the U.S. dollar—are becoming mainstream. Should BVNK opt to partner with Mastercard, it would signify a robust recognition from traditional payment networks, especially after a decrease in Mastercard shares tied to news about stablecoin initiatives from Amazon and Walmart.
BVNK, Mastercard, and Coinbase have all refrained from commenting on the situation.
The Surge of Stablecoins
Established in 2021 by Chris Harmse, Jesse Hemson-Struthers, and Donald Jackson, BVNK aids businesses in utilizing stablecoins for customer transactions, international payments, and various other uses. The startup successfully raised $50 million in December, giving it a valuation of roughly $750 million, backed by major investors like Haun Ventures, Coinbase Ventures, and Tiger Global, with new investments from Visa and Citi.
This valuation is lower than that of Bridge, acquired by Stripe after being founded by former Coinbase and Square employees. However, in a past interview, Hemson-Struthers claimed BVNK is the “global leader” in stablecoin infrastructure due to its solid banking ties and regulatory licenses. While Bridge has gained more visibility through its collaboration with Stripe on products like Open Issuance, an acquisition of BVNK could overshadow such prior milestones.
Stablecoins, which have maintained a steady price for over a decade, have gained substantial traction within Silicon Valley over the past year. Advocates argue these tokens offer faster and cheaper transactions compared to traditional payment methods. Unlike lengthy wire transfers, stablecoins can be sent or received in mere seconds with negligible fees. Companies like BVNK facilitate the interchange between stablecoins and fiat currencies.
Since January, funding for stablecoin startups has significantly surged, driven by the public offering of stablecoin giant Circle in a notable IPO last June, and recent favorable legislation that establishes a framework for cryptocurrency assets. The emergence of stablecoins has prompted traditional financial entities, including Mastercard, to reevaluate their strategies amid competitive pressures.
Despite this, Mastercard executives have played down the impact of stablecoins, with Chief Commercial Payments Officer Raj Seshadri asserting that “most flows will begin and end in fiat,” indicating stablecoins are merely another currency for specific scenarios.
