Mastercard (MA) is reportedly considering acquiring blockchain infrastructure startup Zero Hash as competition for stablecoin payments intensifies.
The global payments and cards provider is in late-stage talks and could pay between $1.5 billion and $2 billion for the crypto company, Fortune reported Wednesday, citing sources familiar with the matter. This comes as Mastercard could lose out to Coinbase in a bid for crypto payments company BVNK, the report adds.
The news comes as stablecoins, or cryptocurrencies linked to fiat currency like the US dollar, have become the next frontier for global payment flows. These digital tokens aim to offer a cheaper and faster alternative to traditional rails by settling on blockchains, thereby bypassing banks. Stablecoin payment volume could reach $1 trillion by 2030 with institutional adoption, foreign exchange settlement and cross-border flows driving growth, predicted a report from Keyrock and Bitso last summer.
Visa has revealed plans to launch its tokenization platform, helping banks issue and manage stablecoins. Stripe, for example, acquired stablecoin infrastructure provider Bridge for $1.1 billion and wallet provider Privy, and is building its own blockchain rail with Paradigm.
Zero Hash, which specializes in providing stablecoin payment infrastructure, processed $2 billion in tokenized fund flows in the first four months of the year amid growing institutional demand for on-chain assets, the company told Coindesk in April. The startup raised $104 million led by Interactive Brokers and Morgan Stanley in September.
Zero Hash did not immediately return a request for comment.
Read more: Investment bank Mizuho says Visa is becoming the ‘Stablecoin of Stablecoins’
