Mastercard is gearing up to acquire Zero Hash, a key player in the stablecoin infrastructure, for an estimated amount between 1.5 to 2 billion dollars, marking a strategic shift towards blockchain finance.
A Multi-Billion Dollar Showdown Around Crypto Rails
The battle to dominate stablecoin payments is heating up. Mastercard is looking to catch up to Coinbase, currently the favorite to acquire another player in the sector, BVNK. The goal is clear: not letting the newcomers of Web3 control the future financial highways of the world.
With this deal, Mastercard aims to expand its presence at the core of the new global financial infrastructure, the instant and tokenized transactions. As stablecoins become more common, payment giants realize that they might be bypassed by blockchain technology.
Stablecoins, The New Digital Gold of Payments
Stablecoins, cryptocurrencies pegged to fiat currencies like the dollar, are emerging as a bridge between traditional finance and blockchain. According to a study conducted this summer by Keyrock and Bitso, the volume of payments in stablecoins could reach 1 trillion dollars by 2030.
The stakes are high: these tokens enable nearly instantaneous cross-border transfers, at low costs, without involving banks. Visa, Stripe, and now Mastercard want a piece of the pie.
Visa, Stripe… and Now Mastercard
The payment giants are moving their pieces one after the other.
- Visa recently announced a tokenization platform for banks to issue and manage their own stablecoins.
- Stripe has invested 1.1 billion dollars to acquire Bridge, a stablecoin infrastructure provider, along with the wallet Privy, to build its own blockchain rails.
The entry of Mastercard into the race confirms a major trend: Web2 giants are reinventing themselves as Web3 players.
Zero Hash, Already an Essential Player
Founded by Edward Woodford, Zero Hash provides the technological foundation for companies to integrate stablecoin payments into their products, without managing blockchain complexity. The company processed 2 billion dollars of tokenized flows in just four months earlier this year, indicating the rise of institutional demand.
In September, the startup raised 104 million dollars from Morgan Stanley and Interactive Brokers, confirming Wall Street’s growing interest in on-chain payments.
Towards a New Era of Global Payment
If the deal goes through, Mastercard would gain a lead over its rivals in the pursuit of standardizing blockchain payments. In an era where stablecoins are becoming the foundation of financial Web3, this acquisition could well mark the beginning of the next major revolution in global payments.
