Mastercard Shifts to Strategic Investment in Zerohash After $2B Acquisition Talks Collapse
Mastercard is reportedly considering a strategic investment in blockchain infrastructure firm Zerohash after the company rejected an outright acquisition, sources familiar with the matter told CoinDesk reporters. Late last year, Mastercard was reportedly in advanced talks to buy the infrastructure company for up to $2 billion. Zerohash offers custody, settlement, and fiat on- and off-ramps, enabling fintechs and brokerages to offer digital assets without building the underlying infrastructure. Ultimately, Zerohash chose to remain independent.
“We are not entertaining an acquisition by Mastercard. We respect the Mastercard team and look forward to scaling commercial partnerships,” a Zerohash spokesperson said, according to CoinDesk. “Remaining independent best positions Zerohash to continue innovating for our customers.” While the acquisition is off the table, discussions about a strategic investment are ongoing. Such a stake would allow Mastercard to gain exposure to Zerohash’s technology and client base without taking full control, aligning with a broader push by traditional finance into digital assets. Mastercard declined to comment.
Zerohash’s Influence in the Crypto Space
The move comes as crypto merger and acquisition activity ramps up. Industry insiders note that investors now favor established infrastructure companies over speculative tokens. Recent deals include CoinGecko exploring a $500 million sale and other fintech firms offering custody, staking, or instant market access.
Morgan Stanley also has a partnership with Zerohash giving the bank direct access to crypto market infrastructure, including liquidity, custody, and settlement services. By investing in the company, which recently achieved a $1 billion valuation, Morgan Stanley also secured a strategic foothold in the backend of digital asset markets. Mastercard has also been linked to potential acquisitions in the crypto sector, including BVNK, a London-based stablecoin payments platform.
For Zerohash, retaining independence while potentially securing a strategic investment from a global payments giant could provide capital and credibility while preserving some independence. Last April, Mastercard announced a major partnership with Kraken to enable Bitcoin and crypto payments at scale across the UK and Europe. The collaboration allows Kraken users to spend digital assets at over 150 million Mastercard-accepting merchants via physical and digital debit cards. Kraken’s recent feature, Kraken Pay, has already seen over 200,000 users activate their “Kraktag” for fast, borderless payments in crypto and fiat. Representatives from either company have yet to publicly comment on this reported news.