Introduction
BVNK, a top provider of payment infrastructure for stablecoins based in the UK, has recently announced a significant investment from Visa Ventures, part of Visa’s larger strategy to intertwine traditional financial services with the expanding cryptocurrency market. This partnership highlights BVNK’s commitment to revolutionizing cross-border payments through stablecoin technology.
Investment Announcement
The investment, revealed on May 6, aligns with BVNK’s plans to extend its services into the United States, marking a notable step in their mission to enhance global payment systems. Jesse Hemson Struthers, CEO and co-founder of BVNK, expressed enthusiasm over the collaboration, noting that combining Visa’s vast payment network with BVNK’s cutting-edge stablecoin infrastructure could transform business operations in today’s digital financial landscape.
Market Projections
According to projections from Visa Onchain Analytics, the global market for stablecoins is expected to skyrocket, with transaction volumes anticipated to hit $27 trillion across approximately 1.25 billion transactions by 2025. BVNK is well-positioned to support this growth, having already facilitated an impressive $12 billion in annual payment volume, allowing various financial institutions and enterprises to utilize stablecoins for domestic and international transactions without needing to directly engage with blockchain technologies.
Future Plans and Developments
This significant investment is a follow-up to BVNK’s successful fundraising, where it raised $50 million in a Series B round last December, showcasing the confidence investors have in the company’s vision. BVNK is also poised to fortify its U.S. footprint by opening new offices in major cities like San Francisco and New York, backed by a team of seasoned professionals.
In a move to better serve businesses, BVNK has introduced Layer1, a platform designed as a “hyper-optimized, stablecoin core banking stack,” which allows companies to efficiently develop their own stablecoin solutions. Additionally, BVNK has rolled out embedded wallets featuring built-in stablecoin capabilities, further solidifying its role in the evolving digital payments landscape.
Industry Growth
The stablecoin sector has witnessed remarkable growth recently, surpassing traditional payment methods, with annual transfer volumes for stablecoins reaching $27.6 trillion in 2024. The dominance of Tether (USDT), accounting for nearly 80% of the trading activity, underscores the expanding prominence of stablecoins in global trade. As such, Visa’s endorsement signals confidence in the future of cryptocurrency as a legitimate alternative to conventional banking.
