Mastercard is negotiating to acquire stablecoin infrastructure company Zerohash for up to $2 billion, Fortune reported, citing people familiar with the matter. Talks are ongoing and could make Mastercard one of the first major payment networks to directly own a regulated provider of blockchain-based settlement technology.
Zerohash’s role in Mastercard’s crypto strategy
Founded in 2017 in Chicago, Zerohash creates software that enables banks and fintech companies to process stablecoin payments and tokenize traditional financial assets. Its platform manages the technical and compliance layers necessary to convert dollars and other assets into blockchain-based tokens.
The company raised $104 million in September at a $1 billion valuation. Its investors include Interactive Brokers, Apollo Global Management, Point72 Ventures and Nyca Partners. Zerohash’s institutional backing and regulatory status have positioned it as one of the most credible US-based crypto infrastructure providers, an attractive target for Mastercard as it expands its blockchain operations.
Mastercard’s focus on stablecoin infrastructure
Mastercard has been testing settlement systems that use regulated stablecoins to settle transactions between banks and merchants. In 2021, it acquired blockchain analytics company CipherTrace to strengthen compliance in digital asset transactions. While parts of CipherTrace’s operations were subsequently scaled back, its risk monitoring tools remain integrated into Mastercard’s payment systems.
This year, Mastercard joined a working group with Robinhood and Kraken to explore how stablecoins could be applied to cross-border remittances and trade settlements, reflecting its broader effort to prepare its network for regulated digital currencies.
Competition with Visa in Blockchain payments
Mastercard’s pursuit of Zerohash comes amid intensifying competition with Visa on blockchain-based payment infrastructure. Earlier this year, Visa Ventures invested in BVNK, a South Africa-based company developing stablecoin payment pathways that connect traditional banks to blockchain networks through a single API.
Mastercard had also explored a possible deal with BVNK, but stepped back after Coinbase entered exclusive negotiations with the company, Fortune reported. Both payment networks are now seeking secure partnerships that could strengthen their positions in the emerging token payments market, an area that is expected to expand considerably over the next decade.
Mastercard and Zerohash refuse to comment
Both Mastercard and Zerohash declined to comment on the ongoing talks, citing confidentiality around active deal discussions. Coinbase, which was previously linked to negotiations with BVNK, also made no statement.
People familiar with the matter said internal due diligence is continuing and discussions remain focused on how Zerohash’s technology could be integrated into Mastercard’s existing systems. The structure of the deal is still under review and no timeline has been set for an announcement.
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