Zerohash Plans New Fundraise After Scuttled Mastercard Investment

Zerohash is reportedly planning a new funding round following an abandoned investment from Mastercard.

That’s according to a report Wednesday (May 20) by CoinDesk which said—per a source with knowledge of the matter—that Mastercard jettisoned plans to invest in digital assets infrastructure provider ZeroHash after the payments giant’s $1.8 billion acquisition of stablecoin payments infrastructure company BVNK.

A report in January said Mastercard was weighing a strategic investment in the Chicago-based ZeroHash even after it turned down an acquisition offer. At the time, Zerohash was said to be in discussions to raise $250 million at a $1.5 billion valuation. This new round would value the company even higher, the source said.

CoinDesk noted that this year has been a busy one for crypto dealmaking exchanges, infrastructure providers and FinTech firms scramble to boost their digital asset capabilities. Analysts expect the trend to continue, the report added, as companies compete for custody, settlement, tokenization and stablecoin capabilities amid rising institutional demand.

Among the more notable deals was Kraken parent Payward’s agreement to purchase derivatives platform Bitnomial.

Bullish—which owns CoinDesk—announced earlier this month it would pay $4.2 billion for Equiniti, a deal to “position Bullish to lead the shift toward blockchain-native capital markets infrastructure,” as the company said in its announcement.

In other crypto news, PYMNTS wrote Wednesday about new Federal Reserve research showing that only 2% of American households used cryptocurrency to purchase something or make payments last year while just 1% used it to send money to friends or family.

“That finding lands at an awkward moment for the digital asset industry,” PYMNTS wrote. “After years dominated by speculation and trading, crypto firms have increasingly repositioned themselves as infrastructure companies focused on payments. Stablecoins are marketed as the future of remittances while blockchain rails are being pitched as cheaper alternatives to traditional card and bank networks.”

The Fed’s data, the report added, spotlights a “stubborn reality:” Consumers can already find the benefits promised by crypto within the conventional financial system. Credit cards eliminated the need for cash while providing fraud protection and rewards. Peer-to-peer services like Venmo, Zelle and Cash App simplify instant transfers, and real-time payment systems increasingly move money between bank accounts within seconds.

“Consumers rarely need to think about settlement rails because modern payment experiences already feel immediate,” the report added. “Cryptocurrency, by contrast, continues to ask users to absorb additional complexity in exchange for benefits many no longer perceive as unique.”