Stablecoin Infrastructure War Heats Up as Mastercard, Coinbase Expand Bets

Coinbase Global Inc. (COIN) and Mastercard (MA) are intensifying their bets on stablecoins, with the latter reportedly in late-stage talks to acquire blockchain infrastructure firm Zero Hash for $1.5 billion to $2 billion, according to a Coindesk report. The deal, if completed, would position Mastercard as a major player in the rapidly expanding stablecoin ecosystem, where payment volumes are projected to hit $1 trillion by 2030, the report said. Meanwhile, Coinbase, which has also been linked to acquisition talks involving crypto payments firm BVNK, reported robust third-quarter financials, according to Bloomberg.

Zero Hash, a key player in stablecoin payment infrastructure, processed $2 billion in tokenized fund flows in the first four months of 2025, driven by rising institutional adoption, the Coindesk report said. The startup raised $104 million in September, led by Interactive Brokers and Morgan Stanley, highlighting investor confidence in its technology. Mastercard's potential acquisition comes as competitors like Visa and Stripe expand their own stablecoin offerings, with the latter paying $1.1 billion for infrastructure provider Bridge and developing blockchain rails with Paradigm.

Coinbase's third-quarter results underscored the sector's momentum. The crypto exchange reported $1.9 billion in revenue, a 55% increase from the prior year, with stablecoin-related revenue climbing to $747 million—a 34% year-over-year rise, according to Bloomberg. The company also boosted its bitcoin holdings by $299 million during the quarter, now holding 14,548 bitcoins, reflecting a strategic shift toward treating the asset as a long-term treasury reserve, Forbes reported. CEO Brian Armstrong emphasized Coinbase's evolution into an "Everything Exchange," integrating trading, custody, and on-chain applications to capture a broader share of the crypto market, Pymnts reported.

Regulatory developments further bolster the industry's growth. The U.S. introduced its first federal framework for stablecoins in July, a move Coinbase cited as a catalyst for institutional adoption, according to Bloomberg. The company's subscription and services division, which includes stablecoin fees and staking revenue, hit a record $747 million in Q3, up from $557 million in the same period last year, Yahoo Finance reported.

As stablecoins gain traction for cross-border payments and treasury management, the race to dominate infrastructure is heating up. With Mastercard's potential entry and Coinbase's expanding ecosystem, the sector's trajectory appears firmly aligned with mainstream finance, the Coindesk report and Pymnts noted.