Mastercard Bets Stablecoins Will Replace Traditional Money Transfer Systems

Mastercard (NYSE:MA) is nearing a landmark $1.5 billion to $2 billion acquisition of Zerohash, a Chicago-based crypto infrastructure startup specializing in stablecoin and blockchain solutions, according to multiple sources familiar with the discussions, a Fortune report and a Cointelegraph report on TradingView. The deal, if finalized, would mark Mastercard's most aggressive foray yet into the stablecoin ecosystem, positioning the payments giant to compete with rivals like Visa and Coinbase as global demand for blockchain-based transactions accelerates .

Zerohash, valued at $1 billion following a $104 million Series D funding round led by Interactive Brokers and Morgan Stanley in September, provides API-driven tools for banks, fintechs, and brokerages to embed crypto trading, tokenization, and stablecoin transfers into their platforms, the Fortune report noted. The startup has processed over $2 billion in tokenized fund flows in the past four months, supporting institutional clients such as BlackRock's BUIDL fund and Franklin Templeton's BENJI Token, according to the Cointelegraph report on TradingView. Its technology also underpins Morgan Stanley's recent expansion of ETrade to include crypto trading for Bitcoin, Ethereum, and Solana .

Mastercard's pursuit of Zerohash underscores a broader industry shift toward stablecoin infrastructure, driven by clearer regulatory frameworks in the U.S. and Europe. The payments giant has already partnered with stablecoin issuers like Circle and joined the Global Dollar consortium with Kraken and Robinhood . However, the acquisition would give Mastercard direct control over the "plumbing" of blockchain payments, enabling it to settle stablecoin transactions on its network without relying on third-party partners, the Cointelegraph piece observed. This move could attract banks seeking to leverage blockchain for faster, cheaper cross-border payments without managing custody or tokenization in-house.

The competitive landscape has intensified as other firms race to capture market share. Mastercard previously bid for London-based stablecoin startup BVNK, which is now in exclusivity with Coinbase after a $2 billion valuation, the Cointelegraph report said. Meanwhile, Visa and Stripe have also expanded their stablecoin offerings, with Stripe acquiring Bridge for $1.1 billion in 2024 to build its own blockchain infrastructure .

Analysts view the potential Zerohash acquisition as a strategic masterstroke. "Mastercard is betting that stablecoins will replace traditional money transfer systems," said Chris Miglino, co-founder of crypto venture firm DNA Fund . The deal could also address regulatory concerns by embedding compliance tools into Zerohash's infrastructure, a critical factor as stablecoin market capitalization surges toward $312 billion—up $100 billion year-to-date .

Mastercard did not comment on the reports, while Zerohash declined to respond to requests for confirmation. If the acquisition closes, it would represent a pivotal step in the convergence of traditional finance and crypto, with Mastercard aiming to redefine cross-border payments and institutional-grade digital asset services.