Mastercard is considering a strategic investment in Zerohash after failed acquisition talks

Mastercard’s plan to acquire Zerohash did not materialize because the blockchain infrastructure company chose to remain independent. Now, the payments processor is considering other strategies—a strategic investment instead of an outright acquisition—to stay connected to the growing crypto ecosystem.

Last year, Mastercard was in the final stages of negotiations to acquire Zerohash in a deal that could reach up to $2 billion. The ambitious valuation reflects the strategic value of the platform, which offers custody, settlement, and fiat on/off-ramps for fintech and brokerage firms. However, the company decided to remain independent and announced their own Series D funding round.

The shift in strategy: From acquisition to partnership

Mastercard will pivot to a new approach—partnership. According to three people familiar with the situation, the acquisition talks are ending, but discussions about strategic investments are continuing to progress. This shift reflects a broader industry trend—when an acquisition target is firmly declining, strategic investors quickly pivot toward minority stakes and operational partnerships.

Mastercard declined to comment in detail, while Zerohash issued an official statement: “We do not accept Mastercard’s buyout. We look forward to expanding our commercial partnerships and believe that remaining independent is the best position for continued innovation and customer service.”

Blockchain infrastructure: The new hotspot for M&A activity

The M&A landscape in crypto is changing dramatically. While speculative protocols have garnered less attention, proven infrastructure projects with revenue streams and regulatory compliance have become highly coveted assets. CoinDesk recently reported that the crypto data platform CoinGecko is being sought for a potential purchase estimated at $500 million.

Mastercard is not alone in seeking strategic opportunities in the sector. Coinbase is also considering acquiring BVNK, a London-based fintech building stablecoin payment infrastructure, with a potential valuation reaching $2.5 billion. These transactions demonstrate a collective strategic pivot by payment giants toward digital asset infrastructure.

The most attractive M&A targets are no longer moonshot protocols but those delivering real value: licensed exchanges, custody providers with institutional clients, and data/compliance firms with high profit margins. Zerohash fits this profile—it is core infrastructure that focuses not on speculation but on practical payment solutions.

The Zerohash moment: Funding round and market positioning

Zerohash secured $104 million in the Series D-2 round last year, led by Interactive Brokers. The funding valued the company at $1 billion, reflecting market confidence in their model. The round included heavyweight validators such as Morgan Stanley, Apollo-managed funds, SoFi, Jump Crypto, Northwestern Mutual Future Ventures, and other prominent players.

The platform offers APIs and developer tools enabling financial institutions and fintech companies to integrate crypto, stablecoin, and tokenization services. Its ecosystem supports clients like Interactive Brokers, Stripe, BlackRock’s BUIDL fund, Franklin Templeton, and DraftKings—serving over 5 million users across 190 countries.

What’s next: Partnership model versus acquisition

The strategic investment route offers flexibility for both parties. For Mastercard, it provides direct access to infrastructure without the need to acquire the entire company or impose a corporate culture change. For Zerohash, it means independent execution with institutional backing from a payments leader.

This model is becoming more common in high-stakes crypto infrastructure plays. Rather than full acquisitions, established players prefer strategic stakes that provide optionality while preserving operational independence of the portfolio company. Such arrangements are typically faster to close and involve less friction during integration.

Currently, Mastercard is carefully considering its next moves. As the acquisition fades, strategic partnerships emerge as a more pragmatic way to participate in the blockchain payment revolution—and to stay agile in a rapidly evolving landscape.