Mastercard (MA) is reportedly looking to acquire blockchain infrastructure startup Zero Hash as competition in the stablecoin payment sector intensifies.
The global payments and card provider is in advanced discussions and might offer between $1.5 billion and $2 billion for the crypto company, according to a report by Fortune published on Wednesday, citing knowledgeable sources. The news arrives as Mastercard potentially faces challenges from Coinbase in its pursuit of crypto payments firm BVNK, the report noted.
This development comes as stablecoins, digital currencies linked to fiat money such as the U.S. dollar, have emerged as the next significant avenue for global payment transactions. These digital assets aim to provide a more economical and faster alternative to traditional systems by utilizing blockchains and bypassing banks. Projections by Keyrock and Bitso indicate that stablecoin payment volumes could hit $1 trillion by 2030, fueled by institutional adoption, foreign exchange settlements, and cross-border transactions.
Visa has announced plans to introduce its tokenization platform, enabling banks to issue and manage stablecoins. For instance, Stripe has acquired stablecoin infrastructure provider Bridge for $1.1 billion and wallet provider Privy, while also developing its own blockchain solutions in collaboration with Paradigm.
Zero Hash, which has focused on providing stablecoin payment infrastructure, processed $2 billion in tokenized fund transactions during the first four months of this year, driven by increasing institutional interest in on-chain assets, the company disclosed to Coindesk in April. The startup secured $104 million in funding led by Interactive Brokers and Morgan Stanley in September.
Zero Hash has not yet responded to a request for comment.
Read more: Investment Bank Mizuho Declares Visa the ‘Stablecoin of Stablecoins’
