Mastercard eyes crypto expansion with the potential purchase of Zerohash, accelerating its stablecoin and tokenization capabilities for institutional clients.
Mastercard is currently engaged in advanced acquisition talks. The first target is the crypto infrastructure startup Zerohash now. According to Fortune, the deal size of between 1.5 and 2 billion is successfully estimated. Moreover, it is one of the biggest stablecoin transfers made by Mastercard in general. Zerohash is an effective developer of essential infrastructure to institutional clients.
Payments Giants Intensify Competition for Stablecoin Technology
Stablecoins are becoming part of the systems of card firms more. These digital assets are backed by real assets such as the U.S dollar on a regular basis. People consider this technology to be faster and cheaper than conventional payments. In addition, stablecoins provide a more secure option for international settlement.
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Mastercard has always been aware of the potential of stablecoins. This is manifested in its current cooperation with crypto firms in motion. These partners are successfully OKX, Crypto.com and Kraken. Hence, the takeover bid of Zerohash is a rational development at this point. The company wants to have a better grasp of the underlying technology itself.
Zerohash was established in 2017 and develops overall key blockchain infrastructure. The company actively constructs a crypto trading infrastructure and a stablecoin. This involves tokenization APIs and other services in particular. These tools assist finance companies in providing services at hand. This in turn encompasses crypto trading, staking, and custody effectively.
Notably, Zerohash just acquired huge financing at the very moment. In the past, the company raised $104 million in a Series D-2 round in September. This round was a valuation of the company at one billion in total. Active fundraising was headed by global brokerage Interactive Brokers. Morgan Stanley and Jump Crypto were other key players that came into success.
This week alone, competitor payments firm Visa went on the offensive with regard to support. Visa has now declared to begin supporting blockchain stablecoins on new blockchains. This brings out the fast escalating competition in the sector in a direct way. In turn, the acquisition of Zerohash is essential to the strategy of competitive positioning by Mastercard.
Zerohash Acquisition to Streamline Cross-Border Transactions
In the case of Mastercard, acquiring Zerohash is a direct route now. The transaction instantly integrates the capabilities to settle in stablecoins successfully. Such integration will have the potential of making cross-border transactions much easier. Moreover, it also extends the services to institutional clients to a great extent. This is essential in increasing market share on the whole.
On the other hand, acquisition is challenged in the international markets. Mastercard will have to operate effectively in the global environment of a patchwork of regulations. These regulations regulate online resources and constantly differ depending on the region. Nonetheless, the transaction has the potential to gain a leadership position. This position ties modern finance to the crypto-world successfully.
The acquisition has immense potential for consumers at all times. It may result in more mainstream crypto-related financial products instantly. As an illustration, consumers could have more convenient access to digital assets in general. As well, new crypto rewards programs can also be actively included. Accordingly, the technology makes the daily financial transactions much easier.
Finally, this possible Zerohash acquisition is very strategic at the moment. It is a major boost to the digital asset road map of Mastercard. The technology is capable of quicker, less expensive and secure transactions around the globe. Consequently, this is putting the payments giant on track towards the future of finance. The market is looking forward to the last transaction confirmation.
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