Mastercard Poised to Buy Crypto Firm Zerohash for Nearly $2 Billion
In a significant move within the cryptocurrency landscape, Mastercard is reportedly in advanced discussions to acquire the crypto startup Zerohash for a price estimated between $1.5 billion and $2 billion, according to a recent report from Fortune. This acquisition would mark one of Mastercard’s largest investments in the stablecoin sector, as the company aims to enhance its offerings in digital payments.
Why Stablecoins Matter
As finance industries integrate digital currencies, the interest in stablecoins—cryptocurrencies tied to traditional assets like the U.S. dollar—has surged. Here are several reasons why Mastercard is focusing on this space:
– Speed and Efficiency: Stablecoins provide faster transaction times compared to conventional payment methods.
– Cost-Effectiveness: Using cryptocurrency can lower transaction costs for both consumers and merchants.
– Enhanced Security: Blockchain technology offers a more secure way to conduct transactions.
Mastercard has demonstrated a commitment to exploring the potential of stablecoins, evidenced by its partnerships with notable firms such as Crypto.com, OKX, and Kraken.
The Role of Zerohash
Founded in 2017, Zerohash is instrumental in developing infrastructure supporting stablecoin and blockchain technologies. Their services enable companies to engage in crypto trading, custody, and staking, making them a crucial player in the evolving landscape of digital finance. Earlier this year, Zerohash secured over $100 million in funding, boosting its valuation to above $1 billion. Major investors included Interactive Brokers and Morgan Stanley, among others.
Market Implications
This potential acquisition follows earlier discussions between Mastercard and Coinbase regarding a $2 billion deal for the stablecoin startup BVNK. However, Coinbase appears to have secured exclusivity in that deal.
The landscape of digital finance is rapidly changing, and if Mastercard successfully acquires Zerohash, it could solidify its position as a leader in the adoption of blockchain-based payment solutions.
As Mastercard continues to explore opportunities in the cryptocurrency space, the acquisition of Zerohash could further reinforce the company’s innovative approaches to payment technologies and the expanding role of stablecoins in the global economy.