Inside stablecoin firm BVNK’s journey to a $1.8B acquisition by Mastercard

Mastercard has the deepest respect for Stripe, Rist of Concentric said. “I think that's another way of saying that they're looking over their shoulder. So they are aware of the competitive threat that is coming from Stripe because of the way they execute, the simplicity in their offering and the lack of legacy they have,” he said.

During the cut and thrust of the deal formation, U.S.-listed crypto exchange Coinbase was reported to have had the upper hand at one point, potentially offering as much as $2.5 billion for BVNK. But something changed, which was to do with chemistry, according to Rist.

“The founders, when choosing a partner or choosing someone to buy them, emphasize a lot on the culture and the chemistry,” Rist said. “And the chemistry with Coinbase — although they probably put a bigger number on the table — it didn't work.”

This came down to the fact that Coinbase is an exchange, while Mastercard is a financial services company, Rist added.

“Mastercard was part of the first discussions and BVNK were quite clear when they got into discussions with Mastercard that there was a meeting of minds,” Rist said. “But they decided to try it out with Coinbase. Mastercard stood outside on the porch waiting for them when that didn't work out. So it's been a painless process, to be honest.”