Insights from Early BVNK Investor Concentric on the Acquisition Journey
By Ian Allison|Edited by Cheyenne LigonUpdated 5 min agoPublished 8 min ago4 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on MasterCard logo on a credit card (Getty Images/jbk_photography)SummaryShow- Mastercard has finalized its acquisition of BVNK, a stablecoin infrastructure company, for $1.8 billion.
- This transaction came after fierce competition from Coinbase and Visa, with BVNK choosing Mastercard due to a stronger cultural fit despite a higher offer from Coinbase.
- The acquisition highlights the competitive landscape as major players like Stripe, Visa, Mastercard, and Coinbase vie for a stake in the approximately $300 billion stablecoin market.
Mastercard's recent acquisition of BVNK for $1.8 billion exemplifies the complex journey often hidden behind high-profile crypto deals, where various suitors compete until the most suitable match is found.
Venture capital firm Concentric, an early backer of BVNK, provided insights into the startup's evolution and the acquisition process, which concluded earlier this week.
Concentric made a strategic investment in BVNK back in 2019 when the startup was valued at only $4 million. Kjartan Rist, the founding partner of Concentric, recounted how they were introduced to BVNK through a highly regarded CEO they had previously supported.
“They came to us highly recommended by an alumni CEO that we had already backed,” Rist shared with CoinDesk. “There was a lot of trust there, and this CEO said, ‘You got to meet these guys’. They were serial entrepreneurs coming out of South Africa. They’d never built businesses outside of South Africa, but they were hungry. They were relentless.”
Although he celebrated the successful exit, Rist expressed bittersweet feelings about the Mastercard acquisition, likening it to sending a child off to boarding school. “It’s actually sad to sign the papers,” he said.
BVNK co-founder and chief business officer Chris Harmse reflected similarly, noting, “It's been an incredible journey. Concentric has been a valued partner throughout that journey.”
The stablecoin sector, a significant area of interest within the crypto landscape, has attracted the attention of major payment networks. The overall market capitalization for stablecoins is estimated at around $300 billion, according to CoinGecko.
The competitive dynamics intensified after Stripe's acquisition of stablecoin platform Bridge for $1.1 billion in late 2024, prompting other firms like Visa and Mastercard to explore acquisition opportunities to remain competitive.
Rist remarked that Mastercard respects Stripe's approach, acknowledging it as a competitive threat due to their efficient execution and innovative offerings.
During negotiations, Coinbase was reported to have had a significant advantage at one point, potentially making an offer as high as $2.5 billion for BVNK. However, the chemistry between BVNK and Coinbase proved to be a critical factor in the decision-making process.
“The founders, when choosing a partner or choosing someone to buy them, emphasize a lot on the culture and the chemistry,” Rist explained. “And the chemistry with Coinbase — although they probably put a bigger number on the table — it didn't work.”
Mastercard was involved in the initial discussions, and Rist noted that BVNK felt a strong alignment with Mastercard, which allowed them to pursue talks with Coinbase before eventually returning to Mastercard for a smoother process.
Visa also showed interest in BVNK, but ultimately decided not to pursue the acquisition, opting instead for a strategy of partnerships rather than ownership in the stablecoin space.
Recent reports indicated that Stripe, Visa, Mastercard, and Coinbase have all backed a new stablecoin platform, reinforcing the importance of stablecoins to traditional financial institutions amidst a broader crypto market downturn.
Rist highlighted specific applications of BVNK's services, noting how stablecoins are enhancing treasury functions for various companies, including one large payments firm that utilizes stablecoins for daily treasury operations.
Additionally, BVNK's offerings support companies with extensive distributed workforces, allowing workers in high-inflation countries to receive dollar-pegged stablecoins instead of local currencies, providing them with more financial stability.
Having successfully invested in BVNK, Concentric is now on the lookout for the next promising stablecoin venture. Rist noted, “There are hundreds of companies out there now claiming to be the next [big] stablecoin company. In my opinion, only about 10% of these guys are full stack, institutionally verified, and can actually become a winner of some sort.”
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