Mastercard Eyes $2 Billion Acquisition of Stablecoin Tech Firm Zerohash

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ago 7 hours

Mastercard Eyes $2 Billion Acquisition of Stablecoin Tech Firm Zerohash

Credit card giant Mastercard is reportedly in advanced discussions to acquire the stablecoin infrastructure firm Zerohash. The acquisition price is expected to range between $1.5 billion and $2 billion, according to sources cited by Fortune. This potential deal signifies Mastercard’s commitment to expanding its presence in the stablecoin sector.

Significance of the Acquisition

This move positions Mastercard to significantly outpace Stripe’s previous acquisition of the stablecoin startup Bridge for $1.1 billion last year. The stablecoin market has experienced substantial growth, with the total market capitalization increasing by approximately $100 billion in 2023 alone.

Growing Interest in Stablecoins

Market capitalization for stablecoins has exceeded $312 billion, with predictions of reaching $750 billion by the end of 2026.
The GENIUS Act has established a clearer framework for issuing and trading stablecoins.
Accounts from the Myriad prediction market indicate over 50% of respondents believe the market value will exceed $360 billion by February.

Mastercard’s spokesperson has refrained from commenting on these acquisition talks. In addition to Zerohash, the company has also been in discussions with another stablecoin startup, BVNK.

Zerohash’s Recent Developments

Zerohash has recently raised $104 million in a series D-2 funding round, bringing its overall valuation to $1 billion. This funding effort was led by global brokerage Interactive Brokers and included contributions from Morgan Stanley and Jump Crypto. Since its inception in 2017, Zerohash has accumulated a total of $275 million in funding.

Strategic Partnerships

Last month, Zerohash announced a collaboration with Morgan Stanley, which will allow E*Trade customers to trade cryptocurrencies such as Bitcoin, Ethereum, and Solana. Zerohash CEO Edward Woodford emphasized the importance of such partnerships for the digital finance infrastructure.

As interest in stablecoins continues to grow within traditional financial firms, partnerships and acquisitions in this space are likely to increase, shaping the future of digital finance.