Mastercard Inc (NYSE:MA) announced on Tuesday that it has entered a definitive agreement to acquire BVNK, a London-based stablecoin infrastructure firm, for up to $1.8 billion, including $300 million in contingent payments.

BVNK, founded in 2021, provides technology that connects fiat payment rails with blockchain-based systems, supporting transactions across all major networks in over 130 countries.

Mastercard said the acquisition will enhance its ability to offer interoperability between traditional currencies and digital assets such as stablecoins, tokenized deposits, and other tokenized assets.

“Most financial institutions and fintechs will in time provide digital currency services,” Mastercard chief product officer Jorn Lambert said. “We want to support them and their customers with a highly compliant, interoperable offering that brings the benefits of tokenized money to the real world.”

The acquisition aligns with Mastercard’s broader strategy to expand end-to-end digital asset support and develop on-chain payment capabilities.

BVNK co-founder and CEO Jesse Hemson-Struthers described the transaction as an opportunity to combine complementary infrastructures to deliver a “future of money” solution.

The transaction includes contingent payments based on BVNK achieving performance metrics and comes amid increasing adoption of digital currencies and stablecoins, as regulatory frameworks evolve in multiple jurisdictions.

The deal is expected to close before the end of the year, pending regulatory approval.

Shares of Mastercard traded hands at $510 on Tuesday, down almost 11% in the year to date.