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Why Mastercard Wants to Spend $2B on a Company You’ve Never Heard Of

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Mastercard is reportedly in late-stage talks to buy blockchain startup ZeroHash for up to $2 billion, according to Fortune. You might not have heard of Zero Hash before, and that’s fine; it’s not really built for regular users.

Zero Hash runs behind the scenes, helping other companies offer crypto features without having to build all the complicated tech or deal with regulations themselves. Think of it as a “crypto backend.” They handle everything from wallets and trading to stablecoins and compliance, while apps or banks just plug into their system with a simple API.

So, if a Fintech app wants to let users buy, sell, or send crypto, Zero Hash makes it happen quietly in the background. They’re licensed in multiple regions and already work with big names like Stripe, Franklin Templeton, Ramp, and Transak.

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So, Why Acquire ZeroHash?

Mastercard has been dipping its toes into crypto for a while now. The potential Zero Hash acquisition could make a lot of sense for them. The biggest reason? Regulation and licensing.

Zero Hash already holds licenses and regulatory approvals across multiple regions, which means buying them could save Mastercard years of legal and compliance work. It would also give them a fast track to meeting crypto regulations globally.

On top of that, Mastercard has been exploring stablecoin-based settlements and tokenized assets; they even ran pilots using USDC. Zero Hash could give them a ready-made platform to scale those experiments into real products.

And since Zero Hash’s API-based setup is designed for powering other companies’ financial tools, it fits right into Mastercard’s business model. Owning it would let Mastercard roll out “crypto-as-a-service” directly to banks, fintechs, and payment processors.

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With Solana’s new deal with Western Union shaking up the finance world, moves like this might just be Mastercard’s way of keeping up. If they pull it off, expect other giants like Visa, PayPal, and Stripe to accelerate their crypto plays too.

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Key Takeaways

  • Mastercard’s rumored $2B move for Zero Hash is all about skipping years of crypto licensing and compliance hurdles.
  • Zero Hash’s tech could let Mastercard instantly launch crypto-as-a-service for banks and fintechs, putting pressure on rivals like Visa and PayPal.

The post Why Mastercard Wants to Spend $2B on a Company You’ve Never Heard Of appeared first on 99Bitcoins.





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