Mastercard in Advanced Talks to Acquire Zerohash for $2B

Mastercard is reportedly on the verge of acquiring the cryptocurrency and stablecoin infrastructure startup Zerohash, with negotiations currently in the advanced stages. According to five insiders who requested anonymity to discuss the confidential matter, the deal is estimated to be worth between $1.5 billion and $2 billion. While there remains a possibility that the agreement could unravel, if finalized, it would mark one of Mastercard’s most significant investments in stablecoins—cryptocurrencies that are tied to tangible assets such as the U.S. dollar.

Established in 2017 and headquartered in Chicago, Zerohash specializes in creating stablecoin and blockchain infrastructure that facilitates both payments and cryptocurrency trading. This potential acquisition comes on the heels of prior discussions Mastercard held with another stablecoin startup, BVNK. Reports indicate that Mastercard and Coinbase were engaged in late-stage negotiations to acquire BVNK for approximately $2 billion. It seems Coinbase has clinched the deal, entering an exclusive agreement with BVNK that prohibits the startup from considering other offers, according to three insiders familiar with the situation.

Representatives for Mastercard, Zerohash, and Coinbase declined to provide comments. A spokesperson for BVNK was not immediately available for a response.

The Surge of Stablecoins

As the cryptocurrency sector has seen remarkable growth over the past year, stablecoin entities have risen to prominence as one of the most attractive segments within the industry. Following Stripe's acquisition of the stablecoin startup Bridge for $1.1 billion, a wave of other venture investments and acquisition talks have ensued.

Stripe’s acquisition of Bridge, alongside Coinbase’s negotiations with BVNK, underscores significant investments in stablecoins and the broader cryptocurrency landscape as a revolutionary approach to payments. Advocates argue that stablecoins deliver benefits over conventional systems such as wire transfers and SWIFT, as blockchain technology can enable quicker transaction settlements at reduced processing costs. Nonetheless, the ecosystem supporting this future is still developing, prompting major players like Coinbase, Mastercard, and Stripe to seek out startups that can enhance their product portfolios.

While Bridge and BVNK focus heavily on stablecoins, allowing businesses to utilize cryptocurrencies like USDC and Tether for applications such as global payroll and treasury management, Zerohash offers a broader array of services. The startup assists companies in launching their own cryptocurrency trading platforms and provides APIs for tokenization—essentially enabling traditional financial assets to be integrated into blockchain frameworks. Zerohash has garnered support from a variety of investors, including Interactive Brokers, Apollo, Point72 Ventures, and Nyca, and successfully raised $104 million in a funding round in September, achieving a valuation of $1 billion.

Although stablecoins hold the potential to disrupt Mastercard’s existing business model—where it earns a small fee, or interchange fee, on transactions—the payments giant has been actively exploring the cryptocurrency space. This includes previous initiatives such as acquiring CipherTrace to bolster its crypto capabilities. As the landscape continues to evolve, Mastercard’s pursuit of Zerohash illustrates its commitment to adapting to the new financial paradigms brought forth by blockchain technology and cryptocurrencies.