What happened?
Citigroup’s venture arm, Citi Ventures, invested in stablecoin infrastructure firm BVNK, marking a clear reversal from earlier warnings about stablecoins. BVNK runs a payments rail that helps move money between fiat and stablecoins for global transactions. The company’s valuation is now above $750 million and it’s already backed by names like Coinbase and Tiger Global, though Citi didn’t disclose the deal size.
Who does this affect?
This touches big banks, fintechs, crypto firms, and companies and consumers who use cross‑border payments or stablecoins. It also matters to regulators and traditional banks that have warned about deposit outflows from yield‑bearing stablecoins and lobbied to limit those products. Competitors and partners—think Ripple, Alchemy Pay, TripleA, and custody providers—are directly in the mix as Citi explores its own stablecoin and crypto custody services.
Why does this matter?
It signals major banks are now embracing stablecoin infrastructure, which could accelerate mainstream adoption and shift large volumes of payments onchain. That shift could reshape how banks attract deposits and fund lending if yield‑bearing stablecoins grow, with estimates of massive potential outflows but mixed evidence so far. Overall, more bank backing will likely boost competition in cross‑border payments, raise demand for Treasury‑backed stablecoins, and push traditional banks to modernize as trillions in stablecoin transactions reshape liquidity and market structure.