Mastercard ( MA ) is reportedly looking to acquire blockchain infrastructure startup Zero Hash as competition for stablecoin payments heats up.
The global payment and card provider is in late-stage negotiations and may pay $1.5-2 billion for the crypto firm, Fortune reported Wednesday, citing sources familiar with the matter. It comes as Mastercard may lose out to Coinbase in bidding for crypto payments firm BVNK, the report added.
The news comes as stablecoins, or cryptocurrencies pegged to fiat money like the US dollar, have emerged as the next frontier for global payment flows. These digital tokens aim to offer a cheaper, faster alternative to traditional rails by settling on blockchains and bypassing banks. Stablecoin payment volume could reach $1 trillion by 2030, with institutional adoption, currency settlement and cross-border flows driving growth, a report from Keyrock and Bitso predicted last summer.
Visa revealed plans to launch its tokenization platform that helps banks issue and manage stablecoins. Stripe, for example, bought 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 rising institutional demand for on-chain assets, the firm 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 Will Be ‘Stablecoins’ Stablecoins’
