In a Potential Game-Changer

Mastercard is reportedly making strides towards acquiring Zerohash, an entity known for providing financial institutions with technology to handle crypto and stablecoin trading and tokenization services.

Zerohash has gained significant attention in recent years thanks to its robust client roster, including partnerships such as the one it recently forged with OnePay. Owned by Walmart, OnePay will utilize Zerohash’s platform to enable cryptocurrency trading within its app, allowing for crypto purchases at the world’s largest retailer.

According to reports, Mastercard is likely to pay between $1.5 billion and $2 billion for this deal. Joel Hugentobler, a Cryptocurrency Analyst at Javelin Strategy & Research, views this as “a solid example of Mastercard’s forward-thinking strategy,” suggesting it indicates a shift from partnerships to owning the infrastructure necessary for crypto or stablecoin services.

Signaling Industry Momentum

This move by Mastercard comes at a time when U.S. stablecoin transactions are on the rise, driven by recent regulatory developments. Business-to-business and cross-border payments are increasingly adopting stablecoins as well.

Hugentobler notes that this acquisition is one of the bigger deals in the sector, signaling momentum within the industry. He emphasizes, “All the embedded crypto rails we picture are happening right before our eyes.”

The Continuing Trend

Mastercard’s foray into Zerohash aligns with a broader trend where many companies are expanding their digital asset offerings. Visa recently piloted a program allowing businesses to prefund transactions via stablecoins on its Visa Direct platform, and Stripe acquired Bridge for about $1.1 billion in one of the largest crypto-related deals so far.

The acquisition would represent a continuation of this trend rather than an end, reflecting the growing importance of digital assets within the financial landscape.