Stablecoin-based payments are now on the radar not only of the crypto world but also of traditional finance giants. Citigroup's investment arm, Citi Ventures, has stepped into the center of this transformation with its strategic investment in BVNK, a stablecoin infrastructure developer. This move, which follows Visa's, signaled the race of global payment giants.
Citigroup invests in stablecoin-based company
Citi Ventures, the investment arm of US financial giant Citigroup, has made a strategic investment in BVNK, a stablecoin-based payment platform. This may not be surprising to many. This comes at a time when interest in the stablecoin ecosystem from traditional finance (TradFi) giants is once again peaking.
BVNK had previously received an investment from Visa in May. This makes both Visa and Citi Ventures the two major institutions behind this initiative focused on stablecoin infrastructure. The companies did not disclose the investment amount, but this partnership confirms that BVNK has become a major player in global payment systems. BVNK stands out with its annual transaction volume exceeding $20 billion. The company's clients include international payment giants such as Worldpay, Flywire, and dLocal. The platform allows businesses to make faster and more cost-effective cross-border payments by using stablecoins in conjunction with traditional currencies.
The stablecoin sector has become one of the fastest-growing areas of the digital asset industry over the past year. Regulatory frameworks, particularly those implemented in major financial centers like the US and Hong Kong, have been a key factor supporting this growth. Banks, payment companies, and institutional investors are now beginning to integrate stablecoins not only into crypto exchanges but also directly into international trade and payment infrastructures.
Citi Ventures President Arvind Purushotham stated that stablecoins are increasingly preferred for both on-chain transactions and the exchange of digital assets. Purushotham stated, "This technology, which offers secure, fast, and transparent payment solutions for the corporate finance world, will become a cornerstone of digital asset infrastructure in the coming years." BVNK has recently been gaining prominence not only with its stablecoin payments but also with its blockchain-based financial integration solutions. The company aims to bridge the gap between traditional banking and the digital asset world, bridging the gap. With the support of major players like Citi and Visa, this goal is expected to accelerate.
According to expert opinions, Citigroup's move demonstrates that stablecoin-based infrastructures are becoming an operational efficiency tool for financial institutions. These investments deepen the integration between traditional payment networks and blockchain-based systems, paving the way for new standards in cross-border transactions.
