Source: Fortune
Summary
Mastercard has acquired London-based startup BVNK for up to $1.8 billion, with $300 million in contingent payments. The deal is expected to close by year-end. BVNK uses stablecoins to power customer transactions and cross-border payments. Mastercard’s stock jumped 2.5% in pre-market trading. The acquisition comes as Mastercard pushes into stablecoins, which proponents say reduce fees and allow faster transactions.
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The numbers tell one story.
Mastercard’s acquisition of BVNK is the largest stablecoin acquisition yet, eclipsing Stripe’s $1.1 billion deal for Bridge. Mastercard’s push into stablecoins comes as the payments giant has fended off speculation that the rise of digital tokens may eat into its margins. Proponents of stablecoins say their use reduces fees and allows faster transactions. Mastercard’s stock jumped 2.5% in pre-market trading.
Mastercard is getting the right tools to move after new addressable markets, said Jorn Lambert, Mastercard’s chief product officer.
Stablecoins are not a threat to Mastercard’s business, but rather an opportunity to make headway in the remittances market, among other areas.
The acquisition price is a large premium over BVNK’s $750 million valuation in its Series B fundraising round in December 2024.
Mastercard is buying its way into the stablecoin market, one acquisition at a time.
Author: Evan Null
