Mastercard Snags BVNK After Failed $2 Billion Coinbase Deal

Mastercard has announced an acquisition of stablecoins infrastructure firm BVNK, which was previously in talks with Coinbase over a $2 billion deal.

Now, it would appear that Mastercard has been successful in obtaining a signature from the stablecoins infrastructure firm. “The deal further expands Mastercard’s end-to-end support of digital assets and value movement across currencies, rails and regions,” noted the press release.

Mastercard is also eyeing an integration of its fiat rails with on-chain payments in this acquisition. Jorn Lambert, Mastercard Chief Product Officer, 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.

Stablecoins, which are cryptocurrencies tied to fiat currencies, have been gaining adoption around the world in recent years, owing to positive regulation like the United States’ GENIUS Act. “We expect that most financial institutions and fintechs will in time provide digital currency services, be it with stablecoins or tokenized deposits,” noted Lambert.

Mastercard’s transaction with BVNK is expected to close before the end of the year, but according to the statement, it’s subject to regulatory review and other customary closing conditions.

Jesse Hemson-Struthers, BVNK co-founder and CEO, 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.

From the chart, it’s visible that the stablecoin market cap has seen its growth stall in recent months. However, unlike the rest of the sector, these assets haven’t actually faced any drawdown, at least not yet. As such, stablecoins have still been holding up relatively well in the wider context.

At the time of writing, Bitcoin is trading around $74,700, up nearly 7% over the past week.