Mastercard (NYSE: MA) is reportedly closing in on a $2 billion deal to acquire crypto-focused company Zerohash, according to an update from Fortune (which has cited sources familiar with the matter). Mastercard is now said to be in late-stage discussions with buy digital assets and stablecoin infrastructure provider Zerohash.
As reported by the media outlet, the two companies could finalize the transaction valued at anywhere between $1.5 and $2 billion. Although a more finalized agreement has not be disclosed, it could potentially indicate another significant push by Mastercard into crypto and the stablecoins sector.
Earlier, it had been reported that the payments processing firm was competing with Coinbase for another stablecoin infrastructure provider, BVNK. But now, it appears that Coinbase has come out ahead in that deal and is said to be in exclusive talks with BVNK.
Notably, Zerohash recently finalized a $104 million round that had included an investment from Morgan Stanley. As part of the deal, the major financial institution had worked Zerohash to assist it with liquidity, custody and settlement for a cryptocurrency trading offering for retail clients via the E*Trade platform.
During the past year, the stablecoins market has grown considerably and is now valued at well over $300 billion. Although other sectors of crypto and web3 have also grown steadily, stablecoins in particular have gained traction due to their ability to settle cross-border transfers and remittances with greater efficiency.
While stablecoins have been primarily used in crypto trading, their use-cases beyond this particular application are emerging. Companies like Mastercard have realized their significant in the future of digital finance, which is why we are seeing more deals where traditional firms are acquiring stablecoin startups. Alternatively, some companies are independently launching their own stablecoin initiatives as well. In the coming years, we should expect many more similar deals or product updates to be announced as the industry continues to grow and onboard more users.
