Mastercard Believes Stablecoins Are Set to Overtake Conventional Money Transfer Methods

Mastercard (NYSE:MA) is reportedly close to acquiring Zerohash, a Chicago-based startup focused on crypto infrastructure, for an estimated $1.5 billion to $2 billion, according to several sources with knowledge of the matter,

and . Should the transaction proceed, it would represent Mastercard’s boldest move yet into the stablecoin sector, strengthening its position against competitors such as Visa and Coinbase as the demand for blockchain-powered payments grows worldwide.

Following a $104 million Series D round led by Interactive Brokers and Morgan Stanley last September, Zerohash reached a $1 billion valuation, Fortune noted. The company delivers API-based solutions that enable banks, fintechs, and brokerages to integrate crypto trading, tokenization, and stablecoin transfers into their services. Over the last four months, Zerohash has facilitated more than $2 billion in tokenized transactions, serving institutional clients like BlackRock’s BUIDL fund and Franklin Templeton’s BENJI Token, according to Cointelegraph on TradingView. Its platform also powers Morgan Stanley’s recent addition of crypto trading to ETrade for

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Mastercard’s interest in Zerohash highlights a wider trend in the industry toward building stablecoin infrastructure, spurred by clearer regulations in the U.S. and Europe. The payments leader has already teamed up with stablecoin providers like Circle and joined the Global Dollar consortium alongside Kraken and Robinhood. Acquiring

would give it direct oversight of the core blockchain payment systems, allowing Mastercard to process stablecoin transactions on its own network without external intermediaries, Cointelegraph noted. This could appeal to banks wanting to use blockchain for quicker, lower-cost international payments without handling custody or tokenization themselves.

The competition in this space is heating up as more companies vie for dominance. Mastercard previously attempted to acquire BVNK, a stablecoin startup based in London, but BVNK is now in exclusive talks with Coinbase after being valued at $2 billion, according to Cointelegraph. Visa and Stripe have also broadened their stablecoin initiatives, with Stripe purchasing Bridge for $1.1 billion in 2024 to develop its own blockchain infrastructure.

Industry experts see Mastercard’s potential Zerohash deal as a savvy strategic move. “Mastercard is wagering that stablecoins will take the place of conventional money transfer systems,” said Chris Miglino, co-founder of crypto investment firm DNA Fund. The acquisition could also help address regulatory issues by integrating compliance features into Zerohash’s platform, which is increasingly important as the stablecoin market cap approaches $312 billion—an increase of $100 billion so far this year.

Mastercard has not issued a statement regarding the reports, and Zerohash has declined to comment. If completed, the acquisition would mark a significant milestone in the merging of traditional finance and digital assets, with Mastercard seeking to transform cross-border payments and institutional digital asset offerings.