Mastercard Pursues Crypto Startup Zerohash for Multi-Billion Dollar Acquisition
Reports have emerged that Mastercard is engaged in late-stage discussions to acquire crypto startup Zerohash for a sum ranging between $1.5 billion and $2 billion, according to Fortune. The news comes as the payment giant continues its pursuit of integrating stablecoins into its systems, which has led to increased investment in blockchain infrastructure.
Mastercard’s interest in acquiring Zerohash stems from the startup’s expertise in developing comprehensive infrastructure for stablecoin and blockchain technology. Founded in 2017, Zerohash provides companies with cutting-edge services related to crypto trading, custody, and staking, cementing its position as a significant player in the burgeoning field of digital currencies.
The acquisition discussions between Mastercard and Zerohash are said to be nearing completion, although there is an unconfirmed claim that similar talks had previously taken place involving Coinbase and stablecoin startup BVNK for approximately $2 billion. It appears the latter deal has since fallen through, but it underscores Mastercard’s eagerness to tap into market trends while leveraging its already-stated ambitions within the crypto space.
Mastercard’s increasing investment in blockchain technology is a strategic response to shifting market forces that prefer faster and more efficient transactions over their traditional counterparts. Their decision aligns with growing sentiments of major financial institutions seeking solutions that integrate stablecoins with legacy systems, thus driving further expansion for Zerohash as it serves an integral part in the ongoing transition towards digitally native services.
Moreover, key among these trends is the valuation associated with Zerohash, following its successful financing round earlier this year. That round saw participation from prominent names like Interactive Brokers and Morgan Stanley, which granted Zerohash a valuation of over $1 billion upon completion.
Zerohash has also secured important partnerships for their foundational work in creating more accessible and streamlined blockchain integration procedures, exemplified by last month’s decision to join forces with E*Trade via a deal that will allow the exchange to offer digital assets trading sometime next year.
