Stablecoin infrastructure platform BVNK has received investments from the payment industry giant Visa.
The new capital comes on the heels of a $50 million Series B funding round in December. Currently, there is no information about the amount of investments that will be received by BVNK.
Rubail Birwadker, head of growth products and partnerships at Visa, said that the e-commerce giant is proud that it supports the stablecoin infrastructure platform. Also in the relevant context, he noted that BVNK helps accelerate the global adoption of stablecoin payments. According to him, the mentioned category cryptocurrency is rapidly becoming part of global payment flows, and Visa is investing in new technologies and developers such as the mentioned company. Also in this context, it was noted that the payment commerce giant remains at the forefront of what will be next in commerce to better serve its customers and partners.
Currently, the stablecoins adoption process is characterized by a high level of intensity. Data from Visa Onchain Analytics shows that last year the total volume of transactions in the relevant currency worldwide reached $27 trillion. It is worth clarifying that the mentioned indicator was recorded based on the results of 1.25 billion financial operations.
BVNK processes over $12 billion worth of transactions annually for companies such as Rapyd and Ferrari. The company’s co-founder and chief executive officer Jesse Hemson Struthers stated that there is currently a once-in-a-generation shift towards a new foundational payment technology powered by stablecoins. He also noted that BVNK is building the infrastructure to make these new rails available to businesses, empowering them to operate at the speed of the modern economy.
Stablecoins allow consumers to transfer money quickly and without restrictions, bypassing traditional banking rails. As part of the relevant practice, a person based in Singapore can move funds to London on the weekend in a few minutes. The obvious convenience associated with the algorithms of the procedure and the high speed of transactions generate positive prospects for scaling stablecoins in the future.
FV Bank chief executive officer Miles Paschini, during a conversation with media representatives in January, stated that the mentioned case does not imply the replacement of existing systems. According to him, in this case, the action is focused on providing consumers with an additional option. He stated that where stablecoins offer superior benefits, customers will naturally gravitate towards them. According to him, as banks increasingly integrate blockchain capabilities, consumers will have more choice in transferring value.
At the same time, such a reality is observed in this case as a fragmented regulation. In the latest Federal Reserve stability report, non-bank companies, private credit, and stablecoins were described as growing sources of risk to the traditional banking ecosystem and potential triggers for financial shocks and runs.
During the December Series B funding round, BVNK, headquartered in London, announced its expansion to the United States. The company has opened offices in New York and San Francisco. In March, the firm debuted what it called the first embedded wallet unifying fiat and stablecoins globally. The single platform provides direct access to blockchains and payment systems such as ACH and Swift.
As for the prospects for further adoption of stablecoins, in this case, one of the main directions is the growth of integration into traditional payment systems. Companies like Stripe have already started using stablecoins to reduce transaction costs and expand the market. As for international financial operations, in this case, the mentioned currency not only simplifies the process but also makes it cheaper. Also, in this case, it is highly likely that as the regulatory system and technology improve, the number of businesses accepting stablecoins as a means of payment will increase. Moreover, the ability to integrate stablecoins generates new opportunities for automated payments and financial services.
As we have reported earlier, Visa to Launch New Solutions.
