Mastercard (MA) is reportedly considering acquiring blockchain infrastructure startup Zero Hash as the competition for stablecoin payments heats up.
The global payments and cards provider is in late-stage talks and could pay $1.5 billion to $2 billion for the crypto firm, Fortune reported on Wednesday, citing sources familiar with the matter. Mastercard may lose out to Coinbase in bidding for crypto payments firm BVNK, the report says.
The news comes as stablecoins, or cryptocurrencies pegged to fiat money like the US dollar, have emerged as the next frontier for global payment flows. These digital tokens aim to provide a cheaper, faster alternative to traditional rail by being settled on the blockchain while bypassing banks. A report from KeyRock and Bitso last summer estimated that with institutional adoption, FX settlements and cross-border flows, stablecoin payments volume could reach $1 trillion by 2030.
Visa unveiled plans to launch its tokenization platform, which will help banks issue and handle stablecoins. For example, Stripe acquired stablecoin infrastructure provider Bridge and wallet provider Privy for $1.1 billion, and is building its own blockchain rails with Paradigm.
Zero Hash, which specializes in providing stablecoin payments infrastructure, processed $2 billion in token fund flows in the first four months of the year amid growing institutional demand for on-chain assets, the firm told Coindesk in April. The startup raised $104 million in September led by Interactive Brokers and Morgan Stanley.
Zero Hash did not immediately respond to a request for comment.
Read more: Investment bank Mizuho says Visa is becoming the ‘stablecoin of stablecoins’