Mastercard Eyes $2 Billion Zero Hash Acquisition in Stablecoin Power Play

By Lukas Schneider | Updated October 31, 2025

Key Points: Mastercard is in advanced negotiations to acquire crypto infrastructure firm Zero Hash for between $1.5 billion and $2 billion, according to Fortune sources. The deal represents Mastercard's second major stablecoin acquisition attempt this month, following its competition with Coinbase for BVNK. If finalized, this acquisition positions Mastercard to control critical stablecoin payment infrastructure as the market approaches $312 billion in capitalization. Zero Hash, founded in 2017 by Edward Woodford, achieved unicorn status in September 2025 with a $1 billion valuation after raising $104 million from Interactive Brokers and Morgan Stanley. The move signals traditional finance's aggressive push into crypto infrastructure as stablecoin adoption accelerates globally.

Key Facts at a Glance

Deal Value: $1.5 billion to $2 billion
Target Company: Zero Hash (Chicago-based)
Founded: 2017 by Edward Woodford
Current Valuation: $1 billion (September 2025)
Latest Funding: $104 million Series D led by Interactive Brokers
Stablecoin Market Cap: $312 billion (2025)
Projected Market Cap: $750 billion by end of 2026 (Standard Chartered)
Deal Status: Advanced negotiations, not finalized
Competing Deal: Coinbase vs Mastercard for BVNK ($2 billion)

Mastercard is making its biggest bet yet on stablecoins. The payments giant is closing in on a deal to acquire Zero Hash for up to $2 billion. Five sources familiar with the negotiations confirmed the talks to Fortune. The deal isn't done. But if it closes, Mastercard gains direct control over stablecoin settlement infrastructure at a critical moment.

This marks Mastercard's second billion-dollar chase in the stablecoin space this month. The company recently competed with Coinbase to acquire BVNK for approximately $2 billion. Coinbase appears to have won that race, entering exclusivity with BVNK. Now Mastercard is pivoting to Zero Hash.

What Is Zero Hash and Why Does Mastercard Want It?

Zero Hash is a crypto infrastructure company that builds the backend for stablecoin payments. Founded in 2017 by Edward Woodford in Chicago, the firm doesn't issue its own stablecoin. Instead, it provides APIs, SDKs, and embeddable tools that let financial institutions integrate crypto and stablecoin capabilities.

The company holds FinCEN registration and multiple state money transmitter licenses across 51 U.S. jurisdictions. This regulatory foundation matters. Mastercard can't just build this compliance infrastructure overnight.

Zero Hash achieved unicorn status in September 2025, raising $104 million in a Series D round led by Interactive Brokers. Morgan Stanley, Apollo Global Management, SoFi, and Jump Crypto all participated. The round valued the company at $1 billion.

That's a 2x multiple Mastercard is reportedly willing to pay. The company's clients include Stripe, Franklin Templeton, BlackRock's BUIDL Fund, and Interactive Brokers. Zero Hash also launched Zero Hash Trust Company in North Carolina, enabling regulated custody and management of tokenized assets.

How Does This Deal Compare to Other Stablecoin Acquisitions?

The Zero Hash deal would rank among the largest crypto infrastructure acquisitions ever. Stripe acquired stablecoin startup Bridge for $1.1 billion in 2024. That deal set a new benchmark for stablecoin infrastructure valuations.

The BVNK competition pushed valuations even higher. Coinbase and Mastercard both offered between $1.5 billion and $2.5 billion for the London-based stablecoin platform. Coinbase ultimately secured exclusivity.

Zero Hash brings different capabilities than BVNK or Bridge. While those companies focus primarily on stablecoin payments, Zero Hash offers broader infrastructure. Its platform supports crypto trading, tokenization APIs, and stablecoin networks. This gives Mastercard optionality across multiple crypto verticals.

Company	Acquirer	Deal Value	Focus Area	Status
Bridge	Stripe	$1.1B	Stablecoin payments	Completed 2024
BVNK	Coinbase	$1.5B-$2.5B	Stablecoin infrastructure	Exclusivity 2025
Zero Hash	Mastercard	$1.5B-$2B	Crypto infrastructure	Negotiations 2025

Why Are Stablecoins Suddenly Worth Billions?

The stablecoin market hit $312 billion in total capitalization in 2025, according to CoinGlass. That's a $100 billion increase this year alone. Standard Chartered projects the market will reach $750 billion by the end of 2026.

Stablecoins are eating into traditional payment rails. They settle transactions in seconds instead of days. Fees run a fraction of wire transfers or SWIFT payments. For cross-border payments, the cost advantage is significant.

Tether (USDT) dominates with $176 billion in circulation, representing 58% of the market. Circle's USDC holds $74 billion, or 25% market share. Together, these two issuers control 83% of the stablecoin market.

But the real action is in infrastructure. Companies like Zero Hash, BVNK, and Bridge don't issue stablecoins. They build the pipes that move stablecoins between fiat and crypto. That's where Mastercard wants to be.

According to Chris Miglino of DNA Fund, "The same way that DATs have infiltrated Wall Street, stables will replace money transfer." That's the thesis driving these billion-dollar deals.

What Challenges Does Mastercard Face in Crypto?

Stablecoins theoretically threaten Mastercard's business model. The company earns interchange fees on every transaction that runs through its network. Stablecoins bypass that network entirely, allowing direct peer-to-peer payments.

Mastercard's stock dropped after the U.S. Senate passed the GENIUS Act in July 2025. The legislation created a federal regulatory framework for stablecoins. Investors worried about disintermediation.

But Mastercard isn't sitting still. The company acquired blockchain analytics firm CipherTrace in 2021. It later shut down many of CipherTrace's products, but the move showed Mastercard's willingness to experiment.

In July 2025, Mastercard announced it would integrate Fiserv's FIUSD stablecoin into its payment products. The company also joined a consortium with Robinhood and Kraken focused on stablecoin technology.

Zero Hash gives Mastercard a different angle. Instead of fighting stablecoins, Mastercard can own the infrastructure layer. The company can earn fees on stablecoin settlement and custody rather than traditional card payments.

What Does Zero Hash Bring to the Table?

Zero Hash operates three main business lines. First, white-labeled crypto brokerages that let firms like Interactive Brokers offer crypto trading. Second, tokenization APIs that helped BlackRock tokenize money market funds. Third, stablecoin networks that enable companies like Stripe to send and receive tokens.

The company has about 200 employees globally. It recently announced a partnership with Morgan Stanley. Starting in 2026, Morgan Stanley's E*Trade platform will offer Bitcoin, Ethereum, and Solana trading using Zero Hash infrastructure.

Edward Woodford, Zero Hash's founder and CEO, told CNBC in September 2025 that "crypto now is not a debated issue at large institutional banks." That shift in sentiment is driving demand for compliant infrastructure.

Zero Hash also holds Virtual Asset Service Provider registrations in the Netherlands and Poland. This European regulatory coverage matters as MiCA (Markets in Crypto-Assets) harmonizes crypto rules across the EU.

How Is the Stablecoin Infrastructure Race Shaping Up?

Traditional finance and crypto-native companies are colliding in the race for stablecoin dominance. Visa announced support for stablecoin settlement across four blockchains and operates over 130 stablecoin-linked products.

Investment bank Mizuho recently called Visa the "stablecoin of stablecoins" because of its extensive integration work. Visa CEO Ryan McInerney emphasized stablecoin capabilities during the company's Q4 fiscal 2025 earnings call.

Coinbase is betting heavily on stablecoin infrastructure through acquisitions and investments. Its venture arm has backed multiple stablecoin companies including Bastion, Stablecore, and ZAR. The BVNK acquisition, if completed, would give Coinbase control over a major payment infrastructure platform.

Stripe's Bridge acquisition brought the payments giant directly into stablecoin issuance infrastructure. The company now offers Open Issuance, which allows businesses to launch their own stablecoins.

Citizens Bank analysts noted that digital asset M&A is "intensifying amid regulatory clarity and rapid tokenization growth." Companies are choosing to buy rather than build to keep pace with demand.

What Are the Regulatory Implications?

Zero Hash's regulatory licenses give Mastercard a fast track into compliant crypto operations. The company is FinCEN-registered as a Money Service Business. It also holds money transmitter licenses in 51 U.S. jurisdictions.

In New York, Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in virtual currency business activity by the NYDFS. That's one of the toughest state crypto licenses to obtain.

The GENIUS Act provides federal-level clarity for stablecoins. The legislation requires stablecoins to be fully backed by U.S. dollars or highly liquid assets. Issuers with over $50 billion in market cap must undergo annual audits.

For Mastercard, owning regulated infrastructure means faster product launches. The company won't need to build compliance from scratch for every new crypto initiative. Zero Hash has already done that work.

What This Means for Stablecoin Infrastructure

The Mastercard-Zero Hash deal signals a fundamental shift in how traditional finance approaches crypto. Payment giants are no longer testing the waters. They're deploying billions to control critical infrastructure.

Stablecoin payment volumes are projected to reach $1 trillion by 2030. Bloomberg estimates that stablecoins could handle 25% of international transactions by 2030, up from less than 1% today. That represents $55 trillion in annual transaction volume.

For crypto-native companies, the competition just intensified. Coinbase, Mastercard, Visa, and Stripe are all racing to dominate stablecoin infrastructure. Smaller players will need to differentiate or face consolidation.

Zero Hash's valuation doubling in just over a year shows how quickly the market is moving. The company raised at $1 billion in September 2025. Now Mastercard is reportedly offering twice that amount.

The regulatory environment is stabilizing. The GENIUS Act provides federal clarity. Major banks like Morgan Stanley and JPMorgan are building crypto offerings. That combination of regulation and institutional adoption is driving infrastructure valuations higher.

For Mastercard, this is about survival as much as growth. Stablecoins are coming whether the company likes it or not. Better to own the rails than get bypassed entirely.

Final Takeaway: Mastercard's $2 billion pursuit of Zero Hash marks a decisive moment in the convergence of traditional finance and crypto infrastructure. With stablecoin market capitalization hitting $312 billion and projected to reach $750 billion by 2026, payment giants are racing to control the infrastructure layer before crypto-native companies lock up the market. The deal, if completed, positions Mastercard to earn fees on stablecoin settlement and custody while leveraging Zero Hash's regulatory licenses across 51 U.S. jurisdictions and partnerships with Morgan Stanley, Stripe, and BlackRock.

About Spino: Spino delivers data-driven crypto analysis and institutional-grade research for digital asset investors. For more research on stablecoin infrastructure and crypto M&A trends, visit spino.io.

Frequently Asked Questions About Mastercard's Zero Hash Acquisition

Sources:

• Fortune: "Mastercard poised to acquire crypto startup Zerohash for nearly $2 billion" (October 29, 2025)
• CNBC: "Crypto startup Zerohash raises $104 million from Morgan Stanley, SoFi, Apollo" (September 23, 2025)
• CoinGlass: Stablecoin market capitalization data (2025)
• Standard Chartered: Stablecoin market projections (2025)
• Fortune: "Coinbase and Mastercard have both held advanced talks to buy BVNK" (October 9, 2025)