Mastercard Eyes $2 Billion Zerohash Acquisition

As reported by Fortune, Mastercard is currently in advanced negotiations to acquire Zerohash, a Chicago-based startup that specializes in the infrastructure for crypto and stablecoins. The anticipated deal could range between $1.5 billion and $2 billion.

Established in 2017, Zerohash has been instrumental in developing blockchain infrastructure and facilitating stablecoin payments as well as crypto trading. If the acquisition goes through, it will represent one of the largest investments by Mastercard in the burgeoning stablecoin market.

This potential acquisition comes on the heels of Mastercard’s earlier discussions regarding BVNK, another player in the stablecoin arena. Reports indicated that Mastercard was considering acquiring BVNK for about $2 billion. However, those talks appear to have concluded with cryptocurrency exchange Coinbase securing the bid. This agreement has placed BVNK under an exclusivity arrangement, preventing it from entertaining other offers.

Mastercard Eyes $2 Billion Zerohash Acquisition In recent times, traditional financial institutions like Mastercard have begun to explore opportunities within the stablecoin sector. Major banks such as Citi and JP Morgan are also looking to enter this space, particularly following the enactment of the GENIUS Act, which aims to regulate stablecoins in the United States.

Notably, the recent acquisition of Bridge, a stablecoin startup, by payments giant Stripe for $1.1 billion, has sparked further interest and investment in the sector. These developments, including Stripe's purchase and Coinbase’s negotiations with BVNK, demonstrate a robust commitment to incorporating stablecoins and cryptocurrencies into future payment systems.

The report emphasizes that proponents of stablecoins highlight multiple benefits over conventional transaction methods such as wire transfers and SWIFT, including quicker transaction times and reduced processing fees. Yet, the necessary infrastructure to support this evolving landscape remains underdeveloped. Consequently, major players like Mastercard, Coinbase, and Stripe are actively seeking partnerships with startups capable of enhancing their service offerings.

Zerohash sets itself apart by providing a diverse array of services that enable companies to launch their own crypto trading platforms. The startup also offers Application Programming Interfaces (APIs) for tokenization, allowing the conversion of traditional financial assets into blockchain-compatible formats.

https://coinzn.org/ Supported by notable investors, including Interactive Brokers, Apollo, Point72 Ventures, and Nyca, Zerohash recently completed a funding round of $104 million, achieving a valuation of $1 billion.

The rise of stablecoins poses a potential disruption to Mastercard’s traditional business model, which primarily relies on collecting interchange fees from transactions. Nevertheless, the company has remained proactive in the cryptocurrency space. For example, Mastercard acquired blockchain analytics firm CipherTrace in 2021, though it has since discontinued many of CipherTrace’s core products. Recently, Mastercard has sharpened its focus on stablecoins, as evidenced by its current negotiations, reflecting the broader industry interest not only in stablecoins but also in crypto-centric exchange-traded funds and digital asset treasuries managed by the world’s leading asset managers.