Mastercard Eyes $2 Billion Purchase of Crypto Startup Zerohash

BENGALURU, India — Mastercard is reportedly in late-stage negotiations to acquire the crypto startup Zerohash for between $1.5 billion and $2 billion, according to five sources familiar with the discussions. This potential acquisition marks one of Mastercard’s biggest moves into the world of stablecoins, cryptocurrencies designed to remain stable by being pegged to traditional assets like the U.S. dollar.

Zerohash, founded in 2017 and based in Chicago, specializes in creating stablecoin and blockchain infrastructure, facilitating payments and crypto trading for financial institutions. The deal highlights the growing interest from traditional financial firms in expanding their capabilities in the volatile crypto market.

Sources indicate that this ongoing negotiation is part of a broader trend where major companies like Mastercard intensify their interest in the stablecoin sector, especially following recent acquisition talks that have included firms like BVNK and Bridge. The latter startup was acquired earlier this year by Stripe for $1.1 billion, further illustrating the competitive landscape.

Despite the potential benefits stablecoins offer, such as reducing transaction costs and processing times compared to traditional banking methods, challenges remain regarding the underlying infrastructure. Large corporations like Coinbase, Mastercard, and Stripe are actively seeking partnerships with startups like Zerohash to enhance their product offerings.

In September, Zerohash secured $104 million in a funding round, raising its valuation to $1 billion, with notable investors such as Interactive Brokers and Apollo. As the conversations continue, Mastercard’s push towards stablecoins reflects a significant pivot in the payments industry’s approach to digital assets.

Mastercard and Zerohash representatives have not responded to requests for comment regarding the ongoing negotiations. If finalized, this acquisition could significantly shape the future of transaction processing in the crypto domain.