Mastercard (MA) is reportedly planning to acquire blockchain infrastructure startup Zero Hash as competition for stablecoin payments intensifies.
The global payments and card provider is in late-stage negotiations and may pay between $1.5 billion and $2 billion for the crypto firm, according to RialCenter sources. This comes as Mastercard appears to be losing out to competitors in the bidding for crypto payments firm BVNK.
Stablecoins, or cryptocurrencies tied to fiat currencies like the U.S. dollar, are becoming the next frontier for global payment flows. These digital tokens aim to provide a cheaper, faster alternative to traditional systems by enabling transactions on blockchains and bypassing banks. A report projected that stablecoin payment volume could reach $1 trillion by 2030 due to institutional adoption, FX settlement, and cross-border transactions.
Visa has announced plans to launch its tokenization platform to assist banks in issuing and managing stablecoins. Similarly, Stripe recently acquired stablecoin infrastructure provider Bridge for $1.1 billion and is developing its own blockchain rail.
Zero Hash specializes in stablecoin payment infrastructure and processed $2 billion in tokenized fund flows in the initial months of the year, driven by increasing institutional demand for on-chain assets. The startup raised $104 million in a recent funding round led by Interactive Brokers and Morgan Stanley.
Zero Hash did not immediately respond to requests for comment.
Read more: Investment Bank Mizuho Says Visa Is Becoming the ‘Stablecoin of Stablecoins’
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