Home » Mastercard Eyes $2B Zerohash Deal To Expand Crypto Clout

Mastercard Eyes $2B Zerohash Deal To Expand Crypto Clout

by Brandon Duncan


Mastercard, as part of its crypto expansion strategy, is close to acquiring the crypto tech company, Zerohash for roughly $1.5 to $2 billion. For the uninitiated, Zerohash, founded in 2017 and based out of Chicago, provides backend support that lets fintechs and other financial institutions add crypto, stablecoin and tokenization features on to their platforms via APIs.

The backend solution package also includes custody, conversions and payouts.

According to a 29 October report by Fortune, if Mastercard manages to bring Zerohash in-house, its tools will help the financial giant strengthen its role in handling stablecoins and other blockchain-based payments.

Moreover, it can better control how money moves across its network, especially as banks and payment firms explore 24/7 digital transactions.

If the deal goes through, it would be Mastercard’s biggest move in crypto yet and a nod to how major financial companies are turning to blockchain for faster international transfers at lower costs.

It has already tested services that let people convert crypto into traditional fiat currency at checkout. However, the competition is heating up. Stripe bought a similar company called Bridge earlier this year for $1.1 billion.

Meanwhile Coinbase is in talks to acquire BVNK, a London-based crypto firm.

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Mastercard Looks To Fasttrack Stablecoin Payments With Zerohash Deal

Mastercard is looking forward to speed up how stablecoins move between businesses and marketplaces. With this acquisition, Mastercard could in the near future offer faster, programmable payouts that work around the clock, mimicking crypto.

With the rise in demand for 24/7 transaction support, banks these days are experimenting with new ways to move money using blockchain, and this is where companies like Zerohash come in.

These firms act as bridges between regular bank accounts and crypto systems that help businesses connect without having to build an entirely new payment setup.

Zerohash has backings from major financial investors and offers plug and play crypto tools for regulated companies. Businesses can use these tools to add crypto features, including sending and receiving stablecoins without handling the coins themselves.

Moreover, with Mastercard adding Zerohash, it will become much easier for fintechs and merchants to start using crypto. As it is, stablecoins have become popular for payrolls, supplier payments and managing cash, since they settle instantly and offer clear records.

But the system is still messy. There are different blockchains with different rules and ways to convert crypto back to cash, which needs a more streamlined and structured approach.

Players like Mastercard are trying to clean up this mess by building unified systems.

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Beyond Zerohash: Mastercard’s Steady Crypto Expansion

Since last year, Mastercard has been following a multi-layered blockchain strategy. Central to this strategy is its Multi-Token Network (MTN), a blockchain-based infrastructure that is designed to support tokenized assets, stablecoins and CBDCs.

In June this year Mastercard partnered with JPMorgan to link its MTN with Kinexys, JPMorgan’s blockchain settlement platform.

Moreover, for regular customers, Mastercard has launched crypto debit cards with companies like Binance and BitPay. These cards let people spend crypto just like cash, and the money is converted to local currency at checkout.

It also partnered with Chainlink to help over 3 billion cardholders buy crypto directly using secure blockchain connections.

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Key Takeaways

  • Mastercard is expanding its crypto infrastructure with Zerohash acquisition, API tool integrations for 24/7 payment transactions
  • Mastercard’s acquisition could streamline crypto integration for fintechs already using its network
  • The company is partnering with firms like Chainlink and JPMorgan to build interoperable crypto rails

The post Mastercard Eyes $2B Zerohash Deal To Expand Crypto Clout appeared first on 99Bitcoins.





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