Mastercard Looks to Snap Up Zerohash in $2B Crypto Push

Mastercard is reportedly in advanced negotiations to buy the crypto and stablecoin infrastructure company Zerohash for between $1.5 billion and $2 billion, according to a Fortune report citing multiple people familiar with the matter.

The talks are currently in their final stages. However, no agreement has been signed yet, and the deal could still fall through. If completed, it would represent one of Mastercard’s largest moves into the crypto and stablecoin space.

Founded in 2017 and headquartered in Chicago, Zerohash develops systems that enable companies to process crypto transactions, issue stablecoins, and tokenize traditional assets. It offers tools for firms that want to enable crypto payments or trading without developing the technology in-house.

Zerohash raised $104 million in September in a funding round that valued the company at roughly $1 billion. Investors included Interactive Brokers, Morgan Stanley, Jump Crypto, and Apollo. The funding came as demand for enterprise blockchain infrastructure has grown, partly due to new regulatory clarity in the U.S. and Europe.

In recent months, Zerohash has announced partnerships with Morgan Stanley’s E-Trade, which plans to launch crypto trading next year. Additionally, OnePay, a financial app majority-owned by Walmart, intends to offer Bitcoin and Ether trading.

Big finance turns to stablecoins

The reported talks come amid growing competition among large financial and payments companies looking to expand into stablecoins, digital tokens pegged to assets like the U.S. dollar.

Earlier this year, Stripe bought the startup Bridge for about $1.1 billion. Even Coinbase and Mastercard were in advanced talks to acquire London-based stablecoin firm BVNK in a deal worth up to $2.5 billion.

Mastercard has been active in the digital asset space, acquiring blockchain analytics firm CipherTrace in 2021 and joining a consortium with Robinhood and Kraken to explore stablecoin standards. 

Also Read: Visa Expands Stablecoin Network Across More Blockchains