Mastercard deepens stablecoin push with up to $1.8 billion BVNK acquisition

Mastercard said Tuesday it will acquire stablecoin payment infrastructure company BVNK for up to $1.8 billion as the card giant deepens its push into blockchain-based transfers.

Increased regulatory clarity and broader use of stablecoins have created opportunities for card networks to expand beyond traditional cards into faster, lower-cost digital payment systems. Mastercard and rival Visa are vying to gain an early lead in the fast-developing segment.

Mastercard said that the agreement will allow its users to make cross-border remittances, commercial payments and settlements with stablecoin, which offers advantages in terms of speed, cost and usability.

“BVNK has spent the last seven years not only developing the technology but also licensing it across multiple geographies,” Mastercard chief product officer Jorn Lambert said in a conference call.

Lambert added that while building similar capacity in-house “will take some time,” the acquisition will allow Mastercard to “get to market much faster.”

The deal includes a contingent payment of $300 million and is expected to be completed before the end of 2026.

Analysts at William Blair said BVNK’s stablecoin infrastructure “in our view, complements (Mastercard’s) existing card solutions, offering more payment and money movement options between fiat and blockchain rails.”

Founded in 2021, BVNK specializes in infrastructure that will bridge fiat and stablecoins. The platform enables sending and receiving payments on all major blockchain networks in over 130 countries.

“BVNK represents a major acquisition opportunity for MA, given its existing impressive geographic reach, difficult-to-obtain payment licenses and strong relationships with key ecosystem participants,” Citi analyst Bryan Keane said.

The deal builds on Mastercard’s broader initiative into digital assets, including its Crypto Partner Programme, which aims to integrate blockchain-based payments into its global network and expand its addressable market.

Mastercard believes stablecoin adoption will likely expand across the financial sector.

(Reporting by Arasu Kannagi Basil and Prakhar Srivastava in Bengaluru; Editing by Shinjini Ganguli)