Citi Ventures, the venture arm of Citigroup, has invested in BVNK, a London-based stablecoin infrastructure company building global payment rails for digital assets.
BVNK did not want to disclose the size of Citi’s investment or its current valuation. However, co-founder Chris Harmse he said CNBC that its valuation now exceeds the $750 million reported during its last financing round. The company has already been backed by major investors including Coinbase and Tiger Global.
“We are seeing an explosion in demand for building stablecoin-based infrastructure,” Harmse told CNBC.
He said BVNK’s biggest push is coming from the United States, its fastest-growing market over the past 18 months as regulatory clarity improves. He added that the recent passage of the GENIUS Act, a US law providing clearer oversight of stablecoins, has increased institutional trust.
Related: All currencies will become stablecoins by 2030: Tether co-founder
Wall Street banks are doubling down on stablecoins
The move comes amid Wall Street’s growing adoption of blockchain-based finance and the growing employ of stablecoins in global payment systems.
“U.S. banks of Citi’s scale, through the GENIUS Act, are focused on… investing in industry-leading companies to ensure they are at the forefront of this technological change in payments,” Harmse said.
Citi has signaled deeper ambitions for digital assets this year. In July, CEO Jane Fraser said the bank was considering issuing its own stablecoin and offering cryptocurrency custody services.
Citi is hopeful about stablecoins. In September, the bank raised its forecast for the stablecoin market, predicting the sector could reach $4 trillion by 2030, citing the currency’s rapid adoption over the past six months. The bank adopted a base case of $1.9 trillion and a bull case of $4 trillion, down from earlier estimates of $1.6 trillion and $3.7 trillion.
In May, Visa invested an undisclosed sum in BVNK through its Visa Ventures division. This comes after the stablecoin infrastructure company closed a $50 million Series B funding round led by Haun Ventures last year.
Cointelegraph reached out to Citi for comment but did not receive a response via publication.
Related: Stablecoins will force ‘everyone’ to share profits: Stripe CEO
The Bank of England will ease stablecoin holding limits
The Bank of England is reportedly reconsidering proposed limits on corporate stablecoin holdings amid robust industry opposition and growing pressure to remain competitive with the United States.
Initially, the BoE proposed restrictions of 20,000 pounds (about $27,000) for individuals and 10 million pounds for companies to limit systemic risks associated with widely used stablecoins such as USDt (USDT) and USDC (USDC). However, the central bank is currently considering exemptions for crypto companies that require larger reserves of stablecoins for trading and liquidity purposes.
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