Mastercard has announced a definitive agreement to acquire BVNK, a leader in stablecoin infrastructure, for up to $1.8 billion, including $300 million in contingent payments.
The deal is part of a strategy to expand Mastercard’s end-to-end support of digital assets and value movement across currencies, rails and regions.
The company noted that opportunities for stablecoins and tokenised deposits are in use cases such as cross-border remittances, payouts, P2P and B2B payments.
To support these use cases, the tokenised payment rails need to connect to existing fiat rails, applying the security, reliability and compliance standards that are the bedrock of payments.
The combined activities of Mastercard and BVNK would deliver a digital asset- and chain-agnostic approach, allowing customers to access the solutions best suited to their needs, without being locked into closed ecosystems.
“We expect that most financial institutions and fintechs will in time provide digital currency services, be it with stablecoins or tokenised deposits. We want to support them and their customers with a best-in-class, highly compliant, interoperable offering that brings the benefits of tokenised money to the real world,” said Jorn Lambert, chief product officer, Mastercard. “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.”
The acquisition adds to the company’s recent commitments, such as the Mastercard Crypto Partner Programme, to foster more collaboration and innovation to maximise the opportunity in the next phase of on-chain payments for all involved.
Jesse Hemson-Struthers, co-founder and CEO, BVNK, said: “For all of the advancements made in simplifying the digital currency opportunity, we have only scratched the surface of what’s possible.
“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.”
The transaction, which is anticipated to close before the end of the year, is subject to regulatory review and other customary closing conditions.
