Zerohash rejects Mastercard acquisition, in talks for $250 million strategic financing

Zerohash Negotiates $250 Million in Funding at a $1.5 Billion Valuation (Up 50% in 5 Months). The company declined a $2 billion acquisition offer from Mastercard but is still in talks for strategic investment. Its clients include Interactive Brokers, Stripe, BlackRock BUIDL, and Franklin D. Roosevelt, covering 190 countries and 5 million users.

Zerohash’s Valuation Soars from $1 Billion to $1.5 Billion in 5 Months

Sources familiar with the matter reveal that blockchain infrastructure company Zerohash is in talks to raise $250 million at a $1.5 billion valuation. According to CoinDesk, the company recently exited negotiations for an acquisition by Mastercard, but the payments giant is still considering a strategic investment, and discussions are ongoing. As more financial institutions begin to offer tokenized assets, stablecoins, and on-chain settlement services at scale, demand for enterprise-grade crypto infrastructure continues to grow, prompting this funding round.

This $1.5 billion valuation represents a 50% increase from Zerohash’s October funding valuation. In October, Zerohash raised $104 million in a Series D-2 funding round led by Interactive Brokers, valuing the company at $1 billion. The valuation has increased from $1 billion to $1.5 billion in just five months, a rare growth rate in the current market environment. Most crypto companies see valuations decline or stabilize during the 2025-2026 bear market, so Zerohash’s ability to grow against the trend indicates strong investor confidence in its business model and market position.

The company stated that the current funding round has attracted new investors including Morgan Stanley, funds managed by Apollo, SoFi, Jump Crypto, Northwest Mutual Future Venture, FTMO, IMC, Liberty City Ventures, as well as existing investors PEAK6, tastytrade, and Nyca Partners. The investor list itself is a testament to Zerohash’s strength. Morgan Stanley and Apollo are top-tier Wall Street institutions, and their participation signals that Zerohash has passed the most rigorous due diligence in traditional finance.

As of press time, Zerohash has not responded to requests for comment. Since discussions are ongoing, the amount may change. Such uncertainty in funding negotiations is normal, and the final scale and valuation could be adjusted based on market conditions and negotiation progress. However, the leak of this information indicates that negotiations are in a relatively advanced stage, and both parties may have reached preliminary consensus on core terms.

Abandoning $2 Billion Mastercard Acquisition to Develop Independently

Fortune magazine reported in October that Mastercard was in late-stage negotiations to acquire Zerohash, with the potential valuation of the deal reaching up to $2 billion. However, Zerohash ultimately chose to withdraw from negotiations, a decision that has sparked widespread discussion in the industry. Turning down a $2 billion acquisition offer requires great courage and firm confidence in its own value, as such opportunities are rare.

Zerohash’s decision to develop independently may be driven by multiple considerations. First, although a $2 billion valuation is attractive, if Zerohash’s management believes the company’s long-term value exceeds this number, maintaining independence and continuing growth could yield greater returns. From a $1 billion valuation in October to the current $1.5 billion, a 50% increase in five months, if this momentum continues, Zerohash could reach a valuation of $5 billion or even $10 billion in a few years.

Second, being acquired by Mastercard would mean losing independence and control. As a subsidiary of Mastercard, Zerohash’s strategic direction, client choices, and technology roadmap would be influenced by the parent company. This could limit its ability to serve competitors of Mastercard and impact its neutrality in certain markets. Remaining independent allows Zerohash to serve all financial institutions without being constrained by a single parent company’s interests.

Third, the current crypto infrastructure market is on the verge of explosive growth. With rapid development of tokenized assets, stablecoins, and on-chain settlement, companies providing enterprise-grade infrastructure face enormous opportunities. Zerohash may believe that being acquired now would cause it to miss this historic growth cycle. Waiting a few years to consider exit could result in a valuation several times higher than today.

Although Mastercard’s acquisition fell through, it is still considering strategic investments. This shift indicates that Mastercard’s valuation of Zerohash remains unchanged, but the cooperation mode has shifted from full acquisition to equity investment. Strategic investment allows Mastercard to obtain partial equity and board seats, participate in Zerohash’s growth, while Zerohash maintains operational independence. This mutually beneficial arrangement may be a rational choice after negotiations.

BlackRock, Stripe Clients Validate Enterprise-Grade Strength

Founded in 2017, Zerohash provides APIs and embeddable developer tools enabling financial institutions and fintech companies to deliver crypto, stablecoins, and tokenized products. Its platform serves clients including Interactive Brokers, Stripe, BlackRock’s BUIDL fund, Franklin D. Roosevelt, and DraftKings, providing services to over 5 million users across 190 countries. This client list is a core support for Zerohash’s valuation growth.

Interactive Brokers is one of the world’s largest online brokerages, managing over $500 billion in assets. Its choice of Zerohash as a crypto infrastructure provider validates Zerohash’s technical stability and compliance capabilities. Stripe, a leading global payment processor serving millions of merchants, partnering with Zerohash indicates that Zerohash’s technology can support large-scale, high-frequency trading.

BlackRock’s BUIDL fund is the world’s largest asset management company’s tokenized money market fund, and its selection of Zerohash demonstrates Zerohash’s leadership in the tokenized asset space. Franklin D. Roosevelt, a traditional asset management giant, adopting Zerohash further confirms the platform’s enterprise-level reliability. DraftKings, one of the largest sports betting platforms in the US, using Zerohash shows the technology’s potential for expansion beyond finance.

Serving over 5 million users in 190 countries proves Zerohash’s technology has been tested in large-scale real-world scenarios. This global coverage and user scale are among the most important factors enterprise clients consider when choosing infrastructure providers.