Coinbase and Mastercard Compete for BVNK in Stablecoin Acquisition

London-based stablecoin firm BVNK is currently the focus of a competitive acquisition race between Coinbase and Mastercard. Reports indicate that Coinbase may have an advantage, although the negotiations, described as “advanced talks,” may not lead to a finalized agreement.

According to information from Fortune, which cites six sources, Coinbase’s position appears stronger than that of Mastercard in this bidding war. The urgency is underscored by the recent strategic investment BVNK received from Citi, as well as financial backing from Visa, which has also invested in the firm this year. The growing interest in stablecoins is reflected in the substantial market activity, with a staggering $27 trillion in global transaction volume and 1.25 billion transactions recorded in 2024 according to an analysis by Visa.

The competitive landscape for stablecoin platforms has intensified, particularly following the acquisition of another stablecoin entity, Bridge, by payments giant Stripe for approximately $1.1 billion earlier this year. This trend highlights the increasing importance of stablecoins in the financial ecosystem.

BVNK operates as a licensed electronic money institution across the UK and Europe, offering named IBANs for both EUR and GBP. The company facilitates access to key payment systems such as SEPA, SEPA Instant, and Faster Payments, enabling merchants to efficiently send and receive payments to suppliers and partners. Annually, BVNK processes over $20 billion in transactions for a diverse array of global enterprises and payment service providers, including Worldpay, Flywire, and dLocal.

As the stablecoin market continues to expand, the outcome of the bidding war between Coinbase and Mastercard could have significant implications not only for the companies involved but for the broader financial landscape as well. The potential deal represents a critical step in the evolution of digital currencies and the ongoing integration of blockchain technology into mainstream finance.

The intense interest in BVNK underscores the pivotal role that stablecoins are expected to play in the future of payments and financial services, marking a notable shift in how transactions are carried out globally.