Mastercard & Crypto’s Powerful Coinbase Eye R34.5bn SA’s best Crypto Buyers

The suitors? Global payments titan Mastercard and crypto behemoth Coinbase. In a story that sounds like it’s straight out of a Silicon Valley dream, a cryptocurrency company founded by South Africans is reportedly in advanced talks for a potential acquisition deal worth a staggering R34.5 billion.

This isn’t just another tech rumor; it’s a potential landmark moment for the South African tech scene. It signals that the innovative spirit and technical talent brewing in our backyard have the power to attract the attention—and chequebooks—of the biggest players in the world.

While the specific name of the crypto company is being closely guarded, sources suggest it is a fintech firm that has developed unique technology in the areas of blockchain infrastructure, cross-border payments, or digital asset security. This expertise would be a priceless asset for both Mastercard, which is deeply investing in the plumbing of the digital economy, and Coinbase, which is constantly seeking to expand its suite of services and technological edge on Mastercard.

What This Means for the Local Ecosystem using the Mastercard

“For years, we’ve known that South African engineers and entrepreneurs are world-class,” says a local venture capitalist who preferred to remain anonymous. “A deal of this magnitude isn’t just an exit; it’s a validation. It puts every other South African tech startup on the global map and proves we can compete on the highest level.”

According to the report, the terms, winning bidder, and final price have yet to be finalised. However, the sale price is between $1.5 billion (R17.3 billion) and $2.5 billion (R43.1 billion).

Founded in 2021 by Jesse Hemson-Struthers, Donald Jackson, Chris Harmse, and George Davis, BVNK is business-to-business stablecoin payments startup. Davis exited BVNK in 2024.

If the deal goes through, the implications are huge:

1. A Massive Win for SA Founders: The financial outcome for the founders and early investors would be life-changing, creating new wealth and a new generation of angel investors for the next wave of startups.

2. Global Spotlight: The international tech and finance media would turn its gaze to South Africa, asking, “What’s so special about their tech ecosystem?” This brings invaluable attention and could attract more venture capital to the region.

3. The Talent Magnet: Stories of success like this inspire top local talent to stay and build in South Africa, rather than seeking opportunities abroad. It shows that you can build a multi-billion rand company from right here at home.

Why Mastercard and Coinbase?

The joint interest from a traditional finance giant and a crypto native company is particularly telling.

• Mastercard has been aggressively moving into the crypto space, partnering with various blockchain networks to enable crypto payments on its network. Acquiring a specialist firm would accelerate this strategy dramatically.

• Coinbase, as one of the largest crypto exchanges, is always looking to innovate, acquire talent, and expand its offerings to stay ahead of competitors like Binance.

The fact that both see immense value in this South African-born company suggests it has built something truly unique and valuable.

The talks are still ongoing, and there is no guarantee of a final deal. However, the mere fact that a R34.5-billion conversation is happening is a resounding victory. It’s a powerful reminder that in today’s borderless digital economy, groundbreaking innovation can come from anywhere—even from right here in South Africa.

South African founders

Hemson-Struthers, Jackson, and Harmse are originally from South Africa with storied careers in various industries. Hemson-Struthers is a serial entrepreneur who founded SAcamera, an online photography store, in 2004. He sold the business to MIH Internet, which integrated it into Takealot.com.

Jackson began his career as a freelance programmer. In 2007, he joined Clickatell as a senior engineer, and from 2013 to 2014 he was a technical director at Cellfind.

Harmse worked at various investment firms in his career, including Renaissance Capital, BNP Paribas, and Centaur Asset Management. In 2020, Harmse joined Coindirect, a cryptocurrency exchange that Hemson-Struthers founded in 2017. Coindirect was shut down in 2021 and its business-to-business operations effectively rebranded into BVNK, while bringing Davis and Jackson on board.

This also resulted in a large number of South Africans working for the company, even though it is officially headquartered in London. According to LinkedIn, at least 104 of BVNK’s over 400 staff are in South Africa.

Stay tuned to Techbrunch for more updates on this developing story.