Citi Backs Stablecoin Startup BVNK as Wall Street Expands Crypto Investments
Through its Citi Ventures business, Citigroup is accelerating its entry into the blockchain-based payments industry. The new investment in demonstrates the company’s commitment to staying ahead in the digital asset industry. Although the size and new valuation numbers were not made public, BVNK said that its valuation is now higher than the prior $750 million mark with this strategic support.
BVNK is already well-known for getting money from prominent industry players like Coinbase and Tiger Global. Now, they are rapidly developing payment rails for digital assets to meet the increasing demand from businesses and institutions viewking to utilize stablecoin technology.
Stablecoin Grows Thanks to Clear Rules
Chris Harmse, one of the co-founders of BVNK, that the US has been the company’s quickest-growing market in the past 18 months. This is because of recent changes in regulations. The GENIUS Act’s enactment in the U.S. has made things a lot clearer for stablecoin operations, which has led to more institutions getting involved.
Harmse said that this precise legislative monitoring has made banks like Citi more likely to invest in the industry, making sure they are well-positioned to take advantage of the new financial technologies that are changing how payments are made around the world.
The Booming Market For Stablecoins and Bets From Institutions
Citi has been interested in the stablecoin market for reasons that extend beyond mere investment. Reports indicate that the bank is considering issuing directly and developing crypto custody services.
In September, Citi increased its estimates for the whole stablecoin sector, saying it could be worth $4 trillion by 2030. The bank’s base case puts the value at $1.9 trillion, and its bullish case views stablecoins reaching $4 trillion, which is higher than prior, more cautious predictions.
Visa, another major player in the financial world, has also invested in BVNK through its own ventures division. This infusion of institutional financing highlights the sector’s growing importance and indicates ‘s willingness to support the transformation to digital asset-backed payment rails.
Changes To Rules and Effects Around The World
Regulators worldwide are re-examining their rules in response to the tsunami of institutional investment. The is considering revising its suggested limits on the amount of stablecoins that individuals and businesses can possess. This is due to input from the industry and the need to remain competitive on the global stage.
Eased regulations give crypto companies more freedom to manage their liquidity and reserves, which assists stablecoins become more widely used in banking.
