Mastercard in late-stage talks to acquire Zerohash for up to $2 billion

Mastercard is in late-stage talks to acquire Zerohash, a Chicago-based crypto and stablecoin infrastructure startup, in a transaction valued at between $1.5 billion and $2 billion, according to several people with direct knowledge of the discussions. The potential deal, which has not been finalized and could still fall through, would mark one of Mastercard’s largest moves into stablecoin and blockchain payment infrastructure.

People familiar with the negotiations said Mastercard is seeking direct control of Zerohash’s API-driven technology, which helps banks, brokerages and fintechs embed fiat-to-crypto conversions, on-ramps, exchange services and tokenization capabilities. Founded in 2017, Zerohash has positioned itself as a provider of regulated plumbing for crypto products and reported that its platform processed more than $2 billion in tokenized fund flows in a recent four-month period. The company raised $104 million in a funding round that valued it at about $1 billion, with backers that include major financial firms and trading platforms.

The talks come amid heightened competition among payments firms, exchanges and fintechs to build regulated stablecoin rails for use...