Ambition under $2 billion: Mastercard acquires Zerohash, aiming to reshape the underlying logic of global payments

Exclusive: Sources Say Mastercard Plans to Acquire Crypto Startup Zerohash for Nearly $2 Billion

Mastercard is targeting another cryptocurrency company. According to five sources familiar with the deal, the payment giant is in the final stages of negotiations to acquire crypto and stablecoin infrastructure startup Zerohash, with the deal valued between $1.5 billion and $2 billion. These sources requested anonymity due to the confidential nature of the discussions. The deal could still fall through, but if completed, it would mark Mastercard’s largest bet yet in the stablecoin sector (cryptocurrencies pegged to underlying assets such as the US dollar).

Chicago-based Zerohash, founded in 2017, primarily builds stablecoin and blockchain infrastructure, including support for payment and crypto trading functionalities. Prior to this potential acquisition, the payment network had already held preliminary talks with stablecoin startup BVNK. According to six sources, Mastercard and Coinbase were in late-stage negotiations to acquire BVNK for around $2 billion. However, three other sources indicated that Coinbase appears to have won the bidding war and is now in exclusive talks with BVNK, meaning BVNK can no longer accept offers from other bidders.

Spokespersons for Mastercard, Zerohash, and Coinbase all declined to comment. BVNK’s spokesperson did not immediately respond to a request for comment.

Stablecoin Frenzy

As the cryptocurrency industry has boomed over the past year, stablecoin companies have become one of the hottest sectors in the space. Following payment company Stripe’s $1.1 billion acquisition of stablecoin startup Bridge, a series of venture capital rounds and acquisition talks have ensued.

Stripe’s acquisition of Bridge and Coinbase’s negotiations with BVNK both indicate that the market sees stablecoins—and the broader crypto sector—as a major bet on the future of payments. Supporters argue that stablecoins have advantages over traditional payment rails such as wire transfers and SWIFT, with blockchain technology enabling faster settlement speeds and lower processing costs. However, the infrastructure supporting this vision remains immature, and large enterprises like Coinbase, Mastercard, and Stripe have been seeking startups that can help them expand new product lines.

Bridge and BVNK are more focused on the stablecoin sector, allowing enterprises to use cryptocurrencies like USDC and Tether for global payroll and treasury management. Zerohash, on the other hand, supports a broader product portfolio, including helping companies build their own crypto trading platforms and providing tokenization APIs (which wrap traditional financial assets onto the blockchain). Backed by institutions such as Interactive Brokers, Apollo, Point72 Ventures, and Nyca, Zerohash completed a $104 million funding round last September at a $1 billion valuation.

Although stablecoins could theoretically disrupt Mastercard’s business model, which relies on transaction fees (interchange fees), the payment giant has long been active in the crypto sector, including its 2021 acquisition of blockchain analytics company CipherTrace. However, the company later shut down several core CipherTrace products. In recent months, Mastercard has further deepened its involvement in the stablecoin sector, including joining an alliance focused on the technology alongside companies such as Robinhood and Kraken.