TLDR
- Mastercard considered acquiring Zerohash for up to $2 billion but ended the talks after Zerohash opted to remain independent.
- Zerohash provides critical services like custody, settlement, and fiat on-/off-ramps for fintech companies and brokerages.
- Despite the end of acquisition discussions, Mastercard is still in talks about a potential investment in Zerohash.
- Zerohash recently raised $104 million in a Series D-2 funding round, valuing the company at $1 billion.
- Zerohash works with major clients including Interactive Brokers, Stripe, and BlackRock, serving over 5 million users across 190 countries.
Mastercard is reportedly considering making a strategic investment in Zerohash, a blockchain infrastructure company, after acquisition talks fell through. The payment processor had been in discussions to purchase Zerohash for up to $2 billion. However, Zerohash decided to remain independent, ending the potential acquisition.
Zerohash Remains Independent After Talks End
Mastercard had been in late-stage discussions to acquire Zerohash, which provides custody, settlement, and fiat on-/off-ramps for fintech firms and brokerages. These services enable businesses to offer digital assets without the need to build their own infrastructure. The acquisition would have allowed Mastercard to expand its digital asset capabilities but was ultimately called off by Zerohash.
In a statement, Zerohash made it clear that it was not open to an acquisition. “We are not entertaining an acquisition by Mastercard,” a spokesperson for Zerohash said. The company added that staying independent is crucial for continuing to innovate and deliver services to its clients.
Mastercard Eyes Investment in Zerohash After Talks End
Despite the end of acquisition talks, Mastercard is still considering an investment in Zerohash. According to sources familiar with the matter, discussions regarding the investment are in progress. These talks suggest that Mastercard remains interested in collaborating with Zerohash, even though a full acquisition is off the table.
The ongoing talks highlight the importance of Zerohash’s services in the blockchain and digital asset sectors. Its platform underpins offerings for clients like Interactive Brokers, Stripe, BlackRock, and Franklin Templeton, among others. With a growing presence in 190 countries and over 5 million users, Zerohash has proven itself to be a valuable player in the space.
Zerohash recently raised $104 million in a Series D-2 funding round, which valued the company at $1 billion. The funding was led by Interactive Brokers and included participation from firms like Morgan Stanley, Apollo-managed funds, and SoFi. The company’s services are crucial for firms looking to integrate crypto, stablecoin, and tokenization capabilities into their products.
The collapse of the Zerohash acquisition talks comes as crypto-related mergers and acquisitions are on the rise. There is a shift towards targeting infrastructure companies with proven revenue models and regulatory compliance. Other companies, such as the crypto exchange Coinbase, have also been in talks with firms like BVNK, which builds stablecoin payment infrastructure.
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