Mastercard is reportedly in advanced negotiations to acquire the Chicago-based crypto and stablecoin infrastructure startup, Zerohash, for a sum ranging from $1.5 billion to $2 billion. This information comes from five anonymous sources familiar with the discussions. While the deal could still fall through, if completed, it would signify one of the largest investments by Mastercard in stablecoins—cryptocurrencies designed to maintain value by pegging to underlying assets such as the U.S. dollar.
Zerohash, established in 2017, focuses on creating stablecoin and blockchain infrastructure that facilitates payments and cryptocurrency trading. This potential acquisition follows Mastercard’s earlier talks with another stablecoin startup, BVNK, which were reportedly in their final stages for a similar valuation. However, BVNK eventually chose to partner exclusively with Coinbase, effectively ending Mastercard’s pursuit of that particular target.
Representatives from Mastercard, Zerohash, and Coinbase have opted not to release statements regarding the negotiations. Meanwhile, BVNK has yet to respond to requests for comment.
The growing interest in stablecoins comes as the broader cryptocurrency sector experiences a resurgence in popularity. Companies specialized in stablecoin infrastructure have captured significant attention, especially following Stripe’s acquisition of the stablecoin startup Bridge for $1.1 billion, which in turn has spurred numerous venture rounds and acquisition talks within the space.
Both Stripe’s purchase of Bridge and the competing offers from Coinbase and Mastercard for BVNK underscore a significant investment in stablecoins as a potential future payment solution. Advocates of stablecoins stress their advantages over conventional payment systems like wires and SWIFT, citing benefits such as faster transaction settlements and lower processing fees via blockchain technology. However, the infrastructure required to fully realize this potential remains underdeveloped, prompting larger companies like Mastercard to seek partnerships with emerging startups that can bolster their service offerings.
Zerohash provides a range of solutions, enabling businesses to launch their own cryptocurrency trading platforms and offering APIs for tokenization, which involves placing traditional financial assets onto blockchain networks. The startup has attracted considerable investment, raising $104 million in a funding round in September, achieving a valuation of $1 billion.
Although the rise of stablecoins poses a potential challenge to Mastercard’s established business model—primarily based on earning interchange fees from transactions—the company has been proactive in engaging with the crypto sector. Its previous acquisition of the blockchain analytics firm CipherTrace in 2021 highlighted its interest, although many of CipherTrace’s core products were later discontinued. In recent months, Mastercard has intensified its focus on stablecoins, including joining a consortium with well-known entities like Robinhood and Kraken to explore the technology further.
