Mastercard is reportedly in advanced negotiations to acquire blockchain infrastructure startup Zero Hash, amid increasing competition in the stablecoin payment sector. According to a recent report from Fortune, the deal could range between $1.5 billion and $2 billion. This move comes as Mastercard appears to be losing ground to Coinbase in a bidding war for crypto payments firm BVNK.
The emphasis on stablecoins—cryptocurrencies pegged to fiat currencies such as the U.S. dollar—highlights a growing interest in transforming global payment systems. These digital assets offer the promise of cheaper and faster transactions by leveraging blockchain technology, thereby bypassing traditional banking processes. A recent report from Keyrock and Bitso estimates that stablecoin payment volumes could soar to $1 trillion by 2030, driven by factors such as institutional adoption, foreign exchange settlements, and cross-border transactions.
In this evolving landscape, competitors are making significant moves; for instance, Visa has announced plans to launch a tokenization platform aimed at assisting banks in managing and issuing stablecoins. Meanwhile, Stripe has expanded its presence in the space by acquiring stablecoin infrastructure provider Bridge for $1.1 billion, in addition to wallet provider Privy, while also developing its own blockchain rail in partnership with Paradigm.
Zero Hash has been making strides in the sector, specializing in stablecoin payment infrastructures. Earlier this year, the startup reported processing $2 billion in tokenized fund flows within the first four months, sparked by a surge in institutional interest for on-chain assets. In September, Zero Hash successfully raised $104 million, with notable backing from firms like Interactive Brokers and Morgan Stanley.
As the competitive landscape continues to shift, the move by Mastercard signals a significant push towards strengthening its foothold in the emerging world of stablecoin transactions. Zero Hash has yet to provide a comment on the ongoing discussions regarding its potential acquisition.
