Mastercard to buy BVNK in $1.8bn deal

Mastercard has agreed to acquire BVNK, a stablecoin payments infrastructure provider, in a deal valued at up to $1.8bn.

The payments group said the transaction is intended to widen its end-to-end capabilities in digital assets and the movement of value across different currencies, payment rails and geographies.

BVNK provides stablecoin payments infrastructure via a single API that links banks with blockchain networks.

Through the platform, businesses can send, receive, convert and hold stablecoins and fiat currencies across multiple payment systems and blockchains.

In a press statement, Mastercard said BVNK has built “deep” expertise and “industry-leading” infrastructure since launching in 2021, aimed at connecting fiat money with stablecoins.

Mastercard added that BVNK’s platform currently supports customers sending and receiving payments across major blockchain networks in more than 130 countries.

It said the technology connects traditional financial systems with decentralised rails, which it described as an important component for emerging payment models.

The purchase price includes $300m tied to contingent payments, and the parties expect the deal to complete before the end of 2026.

Mastercard has not said whether the acquisition will be funded with cash or stock.

The agreement comes after previous talks between BVNK and Coinbase Global on a potential $2bn transaction did not proceed.

Mastercard chief product officer Jorn Lambert said: “This acquisition reinforces what we have always done, using innovation and technology to power economies and empower people. Adding on-chain rails to our network will support speed and programmability for virtually every type of transaction.”

BVNK co-founder and CEO Jesse Hemson-Struthers said: “This deal brings together complementary capabilities to define and deliver the future of money.

“Together, we’re able to deliver an unprecedented infrastructure for digital currency-based financial services.”