Coinbase and Mastercard are in advanced talks to acquire BVNK, a London-based stablecoin infrastructure company. The deal could be worth between $1.5 billion and $2.5 billion. While discussions are ongoing, it is not yet clear whether the acquisition will be completed.
As per a Fortune report, the startup raised $50 million in December from Haun Ventures, with participation from Coinbase Ventures and Tiger Global, valuing BVNK at approximately $750 million. BVNK is valued less than Bridge, another stablecoin company bought by Stripe for $1.1 billion in February.
Still, BVNK is important because it has strong connections with banks and holds financial licenses, making it a major player in stablecoin technology. BVNK helps convert stablecoins to regular money (like dollars), which is why they are becoming more popular.
As of now, MasterCard’s stock price is valued at $564.55, down by 1.93 % over the past 24 hours. Coinbase’s stock price currently stands at $387.00, reflecting a decrease of 0.070 % since the last 24 hours.
This year, stablecoin companies have attracted a lot of investment. The success of Circle, a stablecoin company that went public in June, and the Genius Act, passed in July to regulate stablecoins, have increased interest in the sector.
Traditional financial companies like Mastercard are concerned about these changes. Their stock price fell in June after it was announced that Amazon and Walmart were looking into stablecoins, and when the GENIUS Act was passed.
In 2021, Chris Harmse, Jesse Hemson‑Struthers, and Donald Jackson started BVNK. The company helps other businesses use stablecoins to pay customers, do business across borders, and keep track of their finances all over the world.
This would be the biggest stablecoin deal ever if BVNK were to be bought. This shows that stablecoins are getting more popular and that both crypto and financial companies are trying to be the best in this growing market.