New york: US payments giant Mastercard said Tuesday it will acquire London-based stablecoin infrastructure firm BVNK for up to $1.8 billion, marking its most significant venture into digital currency payments to date. The acquisition includes up to $300 million in contingent payments based on BVNK achieving performance targets and is anticipated to close later this year, Mastercard announced in a statement.

According to Anadolu Agency, the acquisition will enhance Mastercard's capability to integrate traditional payment systems with blockchain-based platforms. This strategic move will enable the company to expand its services to include payments involving stablecoins and tokenized deposits, as digital asset adoption continues to gain momentum. Mastercard's Chief Product Officer, Jorn Lambert, stated that they expect most financial institutions and fintechs to eventually offer digital currency services.

Founded in 2021, BVNK has quickly grown, with its valuation surpassing $750 million last year. The company's platform facilitates transactions across major blockchain networks in over 130 countries. BVNK co-founder and CEO Jesse Hemson-Struthers highlighted the potential of digital currency advancements, noting that the partnership with Mastercard combines complementary capabilities to shape the future of money. He emphasized the unprecedented infrastructure for digital currency-based financial services that this deal will create.