Mastercard has agreed to acquire stablecoin infrastructure firm BVNK in a deal worth up to $1.8bn, underscoring its push into blockchain-based payments.

The agreement includes as much as $300m in contingent payments and is slated to close before the end of 2026, pending regulatory approvals and other customary conditions.

The move highlights Mastercard’s effort to bolster its competitive position against Visa Inc. as both companies vie for early dominance in the rapidly evolving blockchain payments space.

Commenting Mastercard Chief Product Officer, Jorn Lambert, said the company anticipates broad adoption of digital currency services by financial institutions and fintech firms in the coming years.

“We expect ⁠that most financial institutions and fintechs will, in time, provide digital currency services,” he said.

“This acquisition reinforces what we have always done, using innovation and technology to power economies and empower people. Adding on-chain rails to our network will support speed and programmability for virtually every type of transaction.”

He added that Mastercard has been expanding its digital asset capabilities through initiatives like its Crypto Partner Program, aimed at integrating blockchain-based payments into its global network.

Founded in 2021, BVNK provides infrastructure that bridges traditional fiat currencies with stablecoins, allowing businesses to move funds seamlessly across both systems.

The platform supports payments across major blockchain networks and operates in more than 130 countries, positioning it as a key enabler of global digital transactions.

The payments industry is increasingly turning its focus to stablecoins, supported by improving regulatory clarity and growing adoption across international markets.

This shift has created new opportunities for payment networks to compete more aggressively in cross-border transfers, remittances and business payments.

Earlier this month, Visa Inc. expanded its partnership with Bridge, a stablecoin infrastructure platform owned by Stripe, to roll out stablecoin-linked Visa cards in more than 100 countries, significantly extending their earlier collaboration.