Citi invests in stablecoin firm BVNK as banks deepen push into onchain settlement

Citi Ventures has made a strategic investment in BVNK, a company that provides stablecoin infrastructure to enterprises, as interest from major banks in using tokenized dollars for payments and settlement has grown in recent months.

BVNK claims its platform processes over $20 billion annually and powers stablecoin services for clients, including Worldpay, Flywire, and dLocal. “Stablecoins are seeing increased interest in use for settlement of onchain and crypto asset transactions,” said Arvind Purushotham, head of Citi Ventures.  Details shared in a Thursday statement did not include the specific investment sum.

However, the deal contributes to a steadily widening push by large financial institutions into regulated stablecoin activity, following the passage of the GENIUS Act in July, which created a federal regime for payment stablecoins.

The Treasury Department is now taking public comment on how to apply the rules, signaling the next phase of implementation.

Even Citi has been weighing its own offerings in the realm of tokenized money.CEO Jane Fraser said this summer the bank is considering issuing a stablecoin to bolster digital payments. The firm has also explored custody and payment services tied to stablecoins and crypto ETFs.

Banks’ interest in fiat-pegged tokens has surged alongside bigger market projections. Citi research recently lifted its 2030 base-case estimate for stablecoin issuance to $1.9 trillion, while Goldman Sachs has suggested the market could reach the trillions as more explicit rules open the door to mainstream payments and settlement use.  U.S. banks have also explored collaborative approaches. As The Block reported in May, names like JPMorgan, Bank of America, and Citigroup held early talks about a joint stablecoin venture.