Coinbase and Mastercard in Bidding War for BVNK, A Stablecoin Startup Backed by Visa and Citi

Core Insights - BVNK has emerged as a significant player in the financial technology sector, attracting interest from major firms like Coinbase, Mastercard, Visa, and Citi [1][5] - The startup's growth trajectory has been impressive, with annualized volumes reaching $10 billion by the time of its Series B funding round [3] - The increasing adoption of stablecoins poses a challenge to traditional banks and payment processors, prompting them to invest in stablecoin infrastructure [4] Investment and Acquisition Interest - BVNK's Series A funding in 2022 raised $40 million but did not attract major players in the crypto or payments sectors at that time [2] - Following its Series B, BVNK received strategic investments from Visa and Citi, indicating a shift in interest from major financial institutions [3][7] - Reports suggest that Coinbase and Mastercard are in advanced talks to acquire BVNK, with potential valuations between $1.5 billion and $2.5 billion [5][6] Strategic Implications - An acquisition by Coinbase could allow the company to influence the stablecoin choices of BVNK's customers, particularly favoring USDC due to its existing revenue-sharing agreement with Circle [6] - Mastercard's interest in BVNK aligns with its strategy to integrate stablecoins into its global payment network, potentially giving it a competitive advantage over Visa [8]