Visa invests in infrastructure provider BVNK, endorsing stablecoin payments as a strategic move.
New and Improved Article
Visa's latest move into the blockchain-based world sees it investing in stablecoin payments infrastructure provider BVNK, a company processing a whopping $12 billion in annualized stablecoin payment volume. This strategic partnership, announced by BVNK CEO Jesse Hemson-Struthers, is more than just a financial injection - it's a powerful endorsement of BVNK's vision to revolutionize global payments with stablecoin technology.
While the financial terms of the deal remain undisclosed, it follows BVNK's successful $50 million Series B round in December 2024. Notable investors in this round included Haun Ventures, Coinbase Ventures, Scribble Ventures, DRW Venture Capital, Avenir, and Tiger Global.
For Visa, the partnership marks its continued interest in stablecoins, a technology "fast becoming a part of global payment flows," according to Visa's head of growth products and partnerships, Rubail Birwadker.
The collaboration with BVNK could potentially redefine the way businesses operate in the digital economy, particularly in regions with limited access to efficient cross-border banking. BVNK positions its service as an alternative to the outdated and pricey traditional correspondent banking system.
On the heels of the Visa investment, BVNK has been expanding into the U.S. market, opening offices in San Francisco and New York this year. The U.S. operations are being led by industry veterans Amit Cheela and Keith Vander Leest, formerly of BlockFi and Cross River, respectively.
The stablecoin sector is garnering broader institutional interest, with late April seeing Visa partner with Stripe-acquired Bridge startup. This partnership allows fintechs to issue Visa cards that draw directly from stablecoin balances, enabling users to fund cards with stablecoins and merchants to receive payments in their local currencies, all while avoiding crypto volatility.
Stablecoin payment volumes have significantly increased in recent quarters, with Visa's Onchain Analytics reporting $33.4 trillion in global stablecoin volume across 5.5 billion transactions. This growth points to stablecoins moving beyond trading use cases and into the realm of everyday transactions.
Analysts predict that 2025 could be a turning point for stablecoins, as they become key tools for small and medium-sized businesses, going beyond crypto trading and into real-world payments and settlement. Stablecoins could even reinforce the U.S. dollar's dominance, particularly as infrastructure scales globally.
For BVNK, the partnership with Visa is not just a financial boost - it's a prestigious nod from one of the world's leading payments companies. Hemson-Struthers is thrilled about the collaboration, calling it a return to first principles in payments innovation. Combining Visa's expertise in building global payment networks with BVNK's stablecoin infrastructure could create powerful possibilities.
Insights:1. The partnership with Bridge allows for the seamless integration of stablecoin payments into everyday purchases through the issuance of Visa cards linked to stablecoin wallets in multiple countries[1][5].2. Visa is actively experimenting with the use of stablecoins for settlement purposes, having piloted USDC for fulfilling settlement obligations, processing over $225 million in stablecoin volume[2].3. The integration with Bridge and other developments highlight Visa's commitment to making stablecoins usable in everyday transactions globally[3].
- Visa's partnership with Bridge enables the seamless integration of stablecoin payments into everyday purchases, facilitated by the issuance of Visa cards linked to stablecoin wallets across multiple countries.
- In addition to everyday purchases, Visa has been experimenting with the use of stablecoins for settlement purposes, having piloted USDC for fulfilling settlement obligations and processing over $225 million in stablecoin volume.
- The collaboration with Bridge and other developments demonstrate Visa's commitment to making stablecoins usable in a global context for everyday transactions.
- BVNK's strategic partnership with Visa signifies a prestigious nod from one of the world's leading payments companies, further reinforcing BVNK's vision to revolutionize global payments with stablecoin technology.
- The stablecoin sector, with BVNK processing a whopping $12 billion in annualized stablecoin payment volume, is garnering broader institutional interest, particularly from notable investors like Coinbase Ventures, Haun Ventures, and Visa itself.
- Stablecoins could potentially redefine the way businesses operate in the digital economy, particularly in regions with limited access to efficient cross-border banking, offering an alternative to outdated and pricey traditional correspondent banking systems.
- Analysts predict that 2025 could be a turning point for stablecoins, as they become key tools for small and medium-sized businesses, moving beyond crypto trading and into real-world payments and settlement, potentially reinforcing the U.S. dollar's dominance as infrastructure scales globally.