Coinbase and Mastercard have reportedly engaged in substantial discussions regarding the potential acquisition of stablecoin firm BVNK, with the proposed valuation hovering near $2 billion.

Almost one year after the fintech giant Stripe struck a $1.1 billion deal to acquire the stablecoin startup Bridge, two other big corporate players want to scoop up a stablecoin firm of their own. The United States Advanced acquisition discussions for London-based BVNK have been held by crypto exchange Coinbase and payments giant Mastercard, according to six sources with knowledge of the negotiations who requested anonymity to speak. Regarding private business talks. 

While the final terms and the winning bidder are still pending, sources indicate the sale price is expected to fall between $1.5 billion and $2.5 billion. The talks may not result in a final deal, but at present Coinbase appears to have the inside track over Mastercard , three of the sources told Fortune.

Should an agreement be finalized, this would represent the most substantial stablecoin purchase to date, further indicating that stablecoins, which are cryptocurrencies tied to assets such as the U.S. The dollar has entered the financial mainstream. Should BVNK opt to be acquired by Mastercard, it would serve as the most definitive indication that the established payments network—which saw its stock decline in June following reports that news Amazon and Walmart were actively exploring stablecoins—is Acknowledging the increasing importance of this technology.

Mastercard, Coinbase, and BVNK all refused to provide a statement. 

The surge in stablecoins

BVNK, established in 2021 by Chris Harmse, Jesse Hemson-Struthers, and Donald Jackson, assists businesses in leveraging stablecoins for customer transactions, international payments, worldwide treasuries, and numerous other applications. BVNK raised $50 million in December in a round that valued the startup at about $750 million. Haun Ventures spearheaded the funding round, joined by Coinbase Ventures and current backer Tiger Global. Recent investors also include the venture capital divisions of Visa and Citi. 

In that same funding round, BVNK was still valued lower than Bridge, a company established a year after BVNK by Former Coinbase and Square employees, and subsequently purchased by the payment behemoth Stripe in February. In a prior interview with Fortune last December, Hemson-Struthers characterized BVNK as the “global leader” of stablecoin infrastructure, pointing to its broad banking connections and financial permits. Although Bridge has since gained wider recognition for its collaborations with Stripe on innovations such as Open Issuance, enabling companies to issue their own stablecoins, the acquisition of BVNK would probably Surpassing last year's significant agreement. 

For over ten years, stablecoins have been a consistent presence in the cryptocurrency space. These tokens, created to maintain a steady price unlike more volatile digital currencies such as Bitcoin and Ethereum, have now emerged as one of the The most talked-about industries in Silicon Valley throughout the last twelve months. Supporters argue that stablecoins offer quicker and more cost-effective transactions compared to current payment systems. Users can now send or receive tokens in seconds with minimal fees, bypassing the multi-day wait for wire transfers to clear. Startups in the infrastructure space, such as BVNK, enable the conversion between stablecoins and fiat, which refers to government-issued currencies like the U.S. Dollar. Currency. 

Since the start of the year, companies developing stablecoins have secured hundreds in venture capital, totaling millions dollars. This surge in investment has been particularly notable following Circle's public debut via a red-hot IPO in June, and President In July, Donald Trump signed the Genius Act, a piece of legislation establishing a tailored regulatory framework for crypto assets.

Established financial institutions such as banks and payment network operators find themselves on the defensive due to the emergence of stablecoins. Mastercard's stock price experienced a further decline in June following the Senate's approval of the Genius Act.

Mastercard executives have, however, minimized the risk that stablecoins pose to their operations. “I think most flows will begin and end in fiat,” Raj Seshadri, chief commercial payments officer at Mastercard, said on a July call with analysts. “And stablecoin[s] will just be one more currency for some specific use cases where it might have an application.”