ByCoinGape
Mastercard’s $1.8 billion acquisition of stablecoin infrastructure provider BVNK has done more than expand its digital-asset capabilities. It has also changed the competitive landscape for stablecoin payments. That is by putting pressure on Visa to secure new infrastructure partners.
Mastercard completed the BVNK acquisition on August 3 after agreeing to pay $1.5 billion upfront, with up to another $300 million in contingent consideration. BVNK gives Mastercard infrastructure connecting stablecoins with traditional payment rails across cross-border payments, payouts, settlement and treasury flows.
The deal had been announced in March. But once it closed this momth, BVNK was no longer an independent provider that other major payments companies could potentially work with. It was now part of Mastercard’s stablecoin stack.
That timing matters for Visa.
As per Visa’s report, its stablecoin settlement pilot had reached a $7 billion annualized run rate, up 50% from the previous quarter. The company also expanded the program from four to nine blockchains, adding Base, Polygon, Canton, Arc and Tempo to Ethereum, Solana, Avalanche and Stellar.
Visa’s stablecoin settlement volume had previously been reported at roughly $4.5 billion annualized in January. The jump to $7 billion by April shows how quickly the network is expanding its on-chain settlement capabilities.
But Visa’s relationship with BVNK needs an important clarification.
BVNK was not the infrastructure powering Visa’s entire $7 billion VisaNet stablecoin settlement operation. Its role was connected to Visa Direct stablecoin payouts and prefunding, which is separate from VisaNet settlement.
That distinction means Mastercard’s BVNK acquisition has not forced Visa to rebuild its entire stablecoin settlement platform.
Instead, Visa is now looking for infrastructure partners for specific settlement and OTC capabilities as its broader stablecoin business scales.
Visa’s search puts infrastructure firms in focus
Visa is now seeking a new stablecoin settlement and OTC partner through an RFP.
The requirements are significant.
The provider must be capable of supporting multiple stablecoins, including Open USD, while maintaining crypto-exchange licenses across the U.S., Canada, U.K. and Singapore.
That makes this more than a search for a blockchain infrastructure provider.
Visa appears to be looking for a combination of regulatory coverage, stablecoin liquidity, OTC trading, exchange infrastructure and institutional settlement capabilities.
As per analysts, several companies could fit parts of that profile.
Zero Hash stands out because it already has a relationship with Visa for stablecoin prefunding and payouts through Visa Direct. Its infrastructure is built around enabling financial institutions and platforms to embed crypto and stablecoin functionality. This too without operating the underlying infrastructure themselves.
Fireblocks could appeal on the institutional infrastructure side. It offers custody connectivity, transaction infrastructure and digital-asset settlement capabilities.
Paxos brings stablecoin issuance, tokenization and institutional settlement infrastructure. Kraken also combines exchange liquidity and OTC capabilities with a growing regulated footprint.
Circle is also worth watching given its USDC ecosystem and institutional stablecoin infrastructure. Other potential names include FalconX, BitGo and Anchorage Digital, particularly for their institutional liquidity, custody and settlement capabilities.
Still, none should be treated as a confirmed bidder. Visa has not publicly released the RFP or disclosed a shortlist.
Thus, the emerging strategic divide between the two payments giants is becoming clearer.
Mastercard is taking an acquisition-led approach. Visa is taking a partnership-led approach.
Mastercard paid up to $1.8 billion to bring BVNK’s infrastructure inside its own ecosystem.
Visa, meanwhile, is continuing to build its own stablecoin settlement network But it is also looking externally for specialized infrastructure, liquidity and OTC capabilities.
The next infrastructure partner could therefore become a critical piece of that growth.
The question is no longer whether Visa needs stablecoin infrastructure. It clearly does.
The question is who gets to provide it.
And with Mastercard having already taken BVNK off the table, companies such as Zero Hash, Coinbase, Fireblocks, Paxos and Kraken now have an increasingly valuable opportunity. They can become the infrastructure layer behind Visa’s next phase of on-chain payments.
Sneha Agrawal More Stories
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