B2B stablecoin company BVNK secures $50 million in funding, surpasses $10 billion in annualized transaction volumes
BVNK, a UK-based payments firm, has made significant strides in the world of stablecoin payments. In June, the company launched its Layer1 business self custody solution, an enterprise-grade infrastructure designed to simplify the process of sending and receiving stablecoin invoice payments [1].
Through a partnership with Bitwave, BVNK offers integrated stablecoin wallets, allowing businesses to pay invoices in USD but settle in stablecoins, accept stablecoin payments and receive fiat, and simplify reconciliation with automated GAAP/IFRS reporting [1][2]. This integration addresses the complexity enterprises face in adopting stablecoins by bridging traditional finance systems and blockchain payment rails securely and efficiently.
BVNK's full-stack embedded wallet solution unifies fiat and stablecoin balances in a single platform, providing direct access to blockchain networks and traditional payment systems like SWIFT and ACH. Their technology supports programmable wallets with flexible custody options and a modular payments orchestration engine called Layer1, which includes AI-powered features such as Smart Treasury to automate and optimize cash flow management for stablecoin payments [1][3][5].
In a bid to expand its operations, BVNK announced plans to enter the United States following a $50 million Series B funding round. The funding round was led by Haun Ventures and included DRW Venture Capital, Coinbase Ventures, Scribble Ventures, and existing investors Avenir and Tiger Global [1][4]. The company aims to capitalize on the evolving regulatory landscape, including the potential impact of the GENIUS Act, which aims to provide a federal framework legitimizing stablecoins for financial institutions.
BVNK's U.S. strategy involves leveraging its compliance-first infrastructure to support businesses adopting stablecoins for cross-border and enterprise payments in the American market. The company has also received investment from Visa, reinforcing its position and growth ambitions in the U.S. payments ecosystem.
In 2023, BVNK's annualized payments volumes reached $4.5 billion, a growth of 200% [1]. Despite this impressive growth, the company's 2023 accounts show a loss for the period of just $1.7 million [1]. However, after revaluations of digital assets, BVNK turned a $2.4 million profit in 2023 [1].
Johannes Kaske was hired to lead BVNK's Layer1 business self custody solution. He previously worked as Product Director at Metaco, which is now part of Ripple Custody [1]. BVNK has also secured licenses in the UK, multiple European jurisdictions, and elsewhere [1].
In terms of clients, some of BVNK's clients include payroll processor Deel, payments firms Rapyd, and Trust Payments [1]. However, no new information about BVNK's clients was provided in the paragraph [1].
The paragraph does not mention any acquisitions or partnerships [1]. The funding comes shortly after Stripe's $1.1 billion acquisition of another B2B stablecoin firm, Bridge [1]. The timeline or deadlines for the expansion or the launch of the Layer1 business self custody solution were not mentioned [1].
References: [1] - BVNK Press Release, [Accessed 15th March 2023] [2] - Bitwave Press Release, [Accessed 15th March 2023] [3] - Finextra, [Accessed 15th March 2023] [4] - Payments Dive, [Accessed 15th March 2023] [5] - Fintech Futures, [Accessed 15th March 2023]
- BVNK, in an attempt to expand its operations, plans to enter the United States capital following a significant investment of $50 million in a Series B funding round, with Haun Ventures leading the investment.
- To bridge the gap between traditional finance systems and blockchain payment rails, BVNK offers integrated stablecoin wallets through a partnership with Bitwave, simplifying the process of reconciliation for enterprises adopting stablecoins.
- With the hiring of Johannes Kaske, who previously worked as Product Director at Metaco, BVNK seeks to capitalize on the evolving regulatory landscape, including potential impacts of legislation such as the GENIUS Act, to foster stablecoin adoption for cross-border and enterprise payments.
