Mastercard’s Acquisition Talks with Zerohash
Mastercard, the renowned credit card company, is reportedly engaged in advanced negotiations to purchase Zerohash, a company specializing in stablecoin infrastructure, for an estimated price ranging from $1.5 billion to $2 billion. This information comes from a recent article by Fortune, which referenced five confidential sources familiar with the potential acquisition. This move marks Mastercard’s second significant venture in the stablecoin arena this month, as the company seeks to broaden its footprint in this rapidly evolving financial sector, aligning itself with other major players in the finance industry.
Company Responses and Market Context
A spokesperson for Mastercard declined to provide details about these ongoing discussions, emphasizing that the company does not comment on speculative matters. Efforts to gather insights directly from Zerohash have also been initiated by Decrypt.
Earlier this month, it was reported that both Mastercard and Coinbase were in advanced discussions to acquire the stablecoin startup BVNK, with a valuation set around $2 billion. Should either of these acquisitions be finalized, they would surpass the $1.1 billion that Stripe disbursed last year for its acquisition of another stablecoin-focused company, Bridge.
Growth of the Stablecoin Market
The stablecoin market has experienced a surge in activity this year, driven by a regulatory environment that appears more receptive to cryptocurrency transactions. The recent adoption of the GENIUS Act has established a legal framework for the issuance and trading of stablecoins, further stimulating interest from traditional financial institutions and retailers seeking efficient transaction methods.
Current estimates indicate that the total market capitalization of stablecoins has surpassed $312 billion, marking a growth of approximately $100 billion just this year, as noted by CoinGlass, a data analytics firm. Standard Chartered, a UK-based bank, has forecasted that this figure could escalate to $750 billion by the close of 2026. Consensus among participants in a Myriad prediction market suggests that more than half anticipate a valuation exceeding $360 billion by next February.
Insights from Industry Experts
Chris Miglino, co-founder and president of the crypto venture firm DNA Fund, recently highlighted the transformative potential of stablecoins in a conversation with Decrypt, suggesting they could revolutionize money transfers similarly to how digital assets (DATs) have changed Wall Street.
Zerohash’s Recent Developments
Zerohash, which recently closed a Series D-2 funding round worth $104 million, was valued at $1 billion during this financing. Since its inception in 2017, it has amassed a total fundraising of $275 million. Prominent entities such as Interactive Brokers, Morgan Stanley, and Jump Crypto have participated in this latest funding round, reinforcing Zerohash’s position in the market.
Notably, Zerohash secured a partnership with Morgan Stanley last month, allowing clients of the E Trade online platform to engage in trading Bitcoin, Ethereum, and Solana. Zerohash CEO Edward Woodford commented on this collaboration, stating that it highlights the vital role of infrastructure in the burgeoning field of digital finance.
