Mastercard on Brink of $2 Billion Crypto Deal to Bolster Stablecoin Power
Mastercard Eyes Zerohash Acquisition for $1.5 Billion to $2 Billion in a Bid to Enhance Stablecoin Infrastructure
Mastercard is reportedly in advanced talks with Chicago-based Zerohash, a startup specializing in stablecoin and blockchain infrastructure, to acquire the company for between $1.5 billion and $2 billion. This rumored deal would mark one of Mastercard’s most significant investments yet in the realm of stablecoins, cryptocurrencies pegged to underlying assets like the US dollar.
According to sources familiar with the matter, as many as five individuals who wanted to remain anonymous due to the confidential nature of private business discussions confirmed that negotiations are underway. However, there is still a possibility that the talks could fall through without any concrete decisions being made.
The proposed acquisition of Zerohash aligns with Mastercard’s recent push into stablecoins and blockchain technology. The payments giant has been active in this field for several years, leveraging its vast network to facilitate transactions involving cryptocurrencies. Previous discussions about acquiring a stablecoin startup were previously held between Mastercard and Coinbasetogether,with an eye on acquiring BVNK for approximately $2 billion.
Sources stated that after negotiations, Coinbase appears to have won the bidding war against Mastercard and secured exclusivity with BVNK, preventing Zerohash from negotiating offers from other potential buyers during this period. This development underscores the interest in stablecoins from major players in the payments industry.
Stablecoin fever has been gripping the crypto sector as its fortunes have skyrocketed over the past year, leading to an emergence of companies that specialize in this area. Following Stripe’s purchase of Bridge for $1.1 billion, various venture rounds and acquisition talks have followed suit. These developments are significant signs that the future of payments is increasingly moving towards blockchain technology.
Proponents argue that stablecoins offer distinct benefits compared to traditional rails like wires and SWIFT. By utilizing blockchain technology, transactions can be settled at faster speeds with lower processing costs. However, it’s worth noting that the infrastructure needed for widespread adoption remains immature. This is why companies such as Mastercard, Coinbase, and Stripe are seeking startups that can support their next-generation product offerings.
Bridge and BVNK have more pronounced focuses on stablecoins, enabling businesses to employ cryptocurrencies like USDC and Tether in areas like global payroll management. Zerohash has an even broader scope of service, encompassing the establishment of custom exchange platforms as well as tokenization APIs for traditional financial assets digitized onto blockchain.
Backed by a range of investors including Interactive Brokers, Apollo, Point72 Ventures, Nyca, and more, Zerohash raised $104 million in its latest funding round at an estimated valuation of $1 billion.
Mastercard on Brink of $2 Billion Crypto Deal to Bolster Stablecoin Power
Mastercard Eyes Zerohash Acquisition for $1.5 Billion to $2 Billion in a Bid to Enhance Stablecoin Infrastructure
Mastercard is reportedly in advanced talks with Chicago-based Zerohash, a startup specializing in stablecoin and blockchain infrastructure, to acquire the company for between $1.5 billion and $2 billion. This rumored deal would mark one of Mastercard’s most significant investments yet in the realm of stablecoins, cryptocurrencies pegged to underlying assets like the US dollar.
According to sources familiar with the matter, as many as five individuals who wanted to remain anonymous due to the confidential nature of private business discussions confirmed that negotiations are underway. However, there is still a possibility that the talks could fall through without any concrete decisions being made.
The proposed acquisition of Zerohash aligns with Mastercard’s recent push into stablecoins and blockchain technology. The payments giant has been active in this field for several years, leveraging its vast network to facilitate transactions involving cryptocurrencies. Previous discussions about acquiring a stablecoin startup were previously held between Mastercard and Coinbasetogether,with an eye on acquiring BVNK for approximately $2 billion.
Sources stated that after negotiations, Coinbase appears to have won the bidding war against Mastercard and secured exclusivity with BVNK, preventing Zerohash from negotiating offers from other potential buyers during this period. This development underscores the interest in stablecoins from major players in the payments industry.
Stablecoin fever has been gripping the crypto sector as its fortunes have skyrocketed over the past year, leading to an emergence of companies that specialize in this area. Following Stripe’s purchase of Bridge for $1.1 billion, various venture rounds and acquisition talks have followed suit. These developments are significant signs that the future of payments is increasingly moving towards blockchain technology.
Proponents argue that stablecoins offer distinct benefits compared to traditional rails like wires and SWIFT. By utilizing blockchain technology, transactions can be settled at faster speeds with lower processing costs. However, it’s worth noting that the infrastructure needed for widespread adoption remains immature. This is why companies such as Mastercard, Coinbase, and Stripe are seeking startups that can support their next-generation product offerings.
Bridge and BVNK have more pronounced focuses on stablecoins, enabling businesses to employ cryptocurrencies like USDC and Tether in areas like global payroll management. Zerohash has an even broader scope of service, encompassing the establishment of custom exchange platforms as well as tokenization APIs for traditional financial assets digitized onto blockchain.
Backed by a range of investors including Interactive Brokers, Apollo, Point72 Ventures, Nyca, and more, Zerohash raised $104 million in its latest funding round at an estimated valuation of $1 billion.