Mastercard is reportedly negotiating to acquire the crypto infrastructure company Zerohash for a sum between $1.5 billion and $2 billion. Sources familiar with the discussions revealed that these talks are in their advanced stages, although the deal is not yet finalized.
Mastercard’s Strategic Move into the Crypto Sector
Founded in 2017 and based in Chicago, Zerohash specializes in stablecoin and blockchain infrastructure. The company facilitates cryptocurrency payments and trading. This potential acquisition marks a significant step in Mastercard’s ongoing strategy to invest in the stablecoin market, which involves cryptocurrencies tied to traditional assets like the U.S. dollar.
Previous Acquisition Discussions
This effort follows Mastercard’s earlier talks with another stablecoin startup, BVNK. Reports suggest that Coinbase has gained exclusivity in negotiations with BVNK for about $2 billion, effectively sidelining other bidders. This competitive landscape highlights the growing interest in stablecoin technology among major financial players.
The Rising Popularity of Stablecoins
Stablecoins have gained considerable traction within the crypto sector. Their ability to settle transactions quickly and cost-effectively positions them as an appealing alternative to traditional payment methods like wire transfers and SWIFT. As the market for stablecoin innovations expands, companies like Stripe and Coinbase have made significant investments in this space.
Zerohash’s Offerings
- Zerohash provides infrastructure for stablecoins and crypto trading.
- The firm has capabilities to assist businesses in creating their own trading platforms.
- Develops APIs for tokenization, integrating traditional assets within blockchain frameworks.
Zerohash has attracted substantial investment, raising $104 million in a funding round in September, leading to a valuation of $1 billion. Its diverse offerings make it an attractive target for companies like Mastercard.
Mastercard’s Continued Focus on Crypto
Despite potential challenges to its revenue model, Mastercard has remained committed to exploring crypto opportunities. This includes acquiring blockchain analytics firm CipherTrace in 2021, although the company later curtailed many of CipherTrace’s core services. Recently, Mastercard has taken further steps into the stablecoin realm, joining an industry consortium that includes notable firms like Robinhood and Kraken.
As the landscape of digital payments continues to evolve, Mastercard’s move to acquire Zerohash would represent a noteworthy investment in the future of crypto and stablecoin technology.
