Payment giant Mastercard is in advanced negotiations to acquire stablecoin infrastructure startup Zerohash, with the potential acquisition valued between $1.5 billion and $2 billion, according to sources familiar with the matter. The stablecoin sector has experienced significant growth over the past year, with the total market capitalization exceeding $300 billion amid increasingly favorable political and regulatory conditions. Traditional financial institutions, including payment companies, banks, and fintech firms, are accelerating their adoption of stablecoin technology, with payment companies particularly active in integrating stablecoins into their existing systems. This potential acquisition follows Stripe’s recent $1.1 billion purchase of stablecoin startup Bridge, signaling a wave of venture capital investments and acquisition discussions within the stablecoin infrastructure space. Mastercard has maintained an active presence in the cryptocurrency sector, having previously acquired blockchain analytics firm CipherTrace in 2021. While the company later discontinued several key CipherTrace products, it has consistently recognized the potential of stablecoins. Mastercard has recently intensified its focus on stablecoin technology, including joining the Global Dollar Network alliance, which counts Robinhood and Kraken among its members. If finalized, the Zerohash acquisition would represent Mastercard’s largest investment in the cryptocurrency and stablecoin sectors to date, underscoring traditional payment institutions’ deepening embrace of blockchain technology. However, sources indicate the deal remains subject to potential failure. Founded in 2017 and headquartered in Chicago, Zerohash specializes in developing infrastructure for stablecoins and blockchain technology, enabling companies like Mastercard and other financial institutions to offer cryptocurrency trading, custody, and staking services. Zerohash recently demonstrated its market position through a September partnership with Morgan Stanley, which will utilize Zerohash’s technology to provide cryptocurrency trading services on its E-Trade platform starting in the first half of 2026. The company also completed a $104 million funding round in September, achieving a valuation of $1 billion. The round was led by Interactive Brokers (IBKR.O), with participation from Morgan Stanley, SoFi, and other financial institutions, including strategic investors who are also Zerohash clients. Apollo’s funds also participated in the financing. Notably, prior to the potential Zerohash acquisition, both Mastercard and Coinbase engaged in separate advanced negotiations to acquire stablecoin startup BVNK for approximately $2 billion. According to three informed sources, Coinbase appears to have prevailed in the bidding competition, securing an exclusive agreement with BVNK. While Bridge, BVNK, and Zerohash all operate in the stablecoin infrastructure space, Bridge and BVNK maintain a stronger focus on stablecoin applications, enabling companies to utilize cryptocurrencies like USDC and Tether for global payroll and treasury management. In contrast, Zerohash offers a broader product suite, including assistance for companies establishing their own cryptocurrency trading platforms, APIs for tokenization, and solutions for wrapping traditional financial assets on blockchain networks. As traditional payment systems transition toward digital assets, Mastercard’s potential acquisition of Zerohash may signal that the ‘payment wars are fully shifting to blockchain,’ with stablecoins potentially emerging as the new backbone of global payments. However, the infrastructure supporting this future remains underdeveloped, suggesting that major corporations like Mastercard and Stripe will likely continue seeking startup partnerships to help build the necessary technological foundations.