Mastercard Eyes Zero Hash Acquisition for Nearly $2B Bet on Stablecoins: Report

Mastercard (MA) is reportedly eyeing to acquire blockchain infrastructure startup Zero Hash as the competition for stablecoin payments is heating up.

The global payments and card provider is in late stage talks and could pay $1.5 billion-$2 billion for the crypto firm, Fortune reported on Wednesday citing sources familiar with the matter. That comes as Mastercard might be losing out against Coinbase on bidding for crypto payments firm BVNK, the report added.

The news comes as stablecoins, or cryptocurrencies tied to fiat money like the U.S. dollar, have emerged as the next frontier for global payment flows. These digital tokens aim to offer cheaper, faster alternative to traditional rails by settling on blockchains, circumventing banks. Stablecoin payment volume could reach $1 trillion by 2030 with institutional adoption, FX settlement and cross-border flows driving growth, a report by Keyrock and Bitso this past summer projected.

Visa unveiled plans to launch its tokenization platform, helping banks to issue and handle stablecoins. Stripe, for example, acquired stablecoin infrastructure provider Bridge for $1.1 billion and wallet provider Privy, and is building its own blockchain rail with Paradigm.

Zero Hash, which has specialized on 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 Is Becoming the ‘Stablecoin of Stablecoins’