Mastercard is reportedly in advanced discussions to acquire blockchain infrastructure firm Zero Hash, a move signaling its heightened ambition to dominate the rapidly expanding stablecoin payments market amid intensifying competition among global financial giants.
The potential deal could be valued between $1.5 billion and $2 billion, according to sources cited by Fortune. This acquisition would position Mastercard to enhance its offerings in payments utilizing stablecoins, which are cryptocurrencies pegged to traditional fiat currencies like the U.S. dollar.
Stablecoins are gaining traction for international payments and inter-institutional financial services due to their potential for faster and more cost-effective transactions compared to conventional banking systems.
A recent study projected that the volume of stablecoin payments could reach $1 trillion annually by 2030, driven by institutional adoption and growth in cross-border trade.
The reported negotiations unfold as major payment processors and crypto companies are aggressively vying for control of the blockchain payments infrastructure.
Visa recently unveiled its own tokenization platform designed to assist banks in issuing and managing stablecoins.
Stripe, another prominent payment firm, acquired Bridge, a stablecoin infrastructure provider, for $1.1 billion. It also purchased digital wallet company Privy and is developing a blockchain-based payment system in collaboration with investment firm Paradigm.
Mastercard is also reportedly lagging behind Coinbase in a bid to acquire BVNK, another key player in the digital financial infrastructure ecosystem.
Zero Hash has become a notable provider of solutions, enabling businesses to integrate payments using stablecoins and tokenized assets into their platforms.
The company reported processing over $2 billion in tokenized transactions during the first four months of the year, reflecting growing institutional demand for digital assets.
Last September, Zero Hash successfully raised $104 million in an investment round led by major financial industry players Interactive Brokers and Morgan Stanley.
Zero Hash has not yet issued any official comments regarding the ongoing discussions with Mastercard.
This potential acquisition aligns with Mastercard’s broader strategy to expand its services into the decentralized digital economy, complementing its existing traditional card payment infrastructure.
Mastercard has already engaged in various pilot programs with banks and fintech companies to integrate cryptocurrencies and stablecoins into its payment networks, aiming for seamless transitions between traditional and digital finance.
Should the acquisition materialize, it could mark a significant milestone for the mainstream adoption of blockchain payments, unifying the efforts of established financial institutions with the agility of crypto startups in an increasingly digital global ecosystem.