Mastercard’s Foray into Crypto: A $2 Billion Bet on 24/7 Stablecoin Settlement
Mastercard is reportedly in advanced talks to acquire crypto infrastructure provider Zero Hash for $1.5 billion to $2 billion, following previous interest in stablecoin platform BVNK. This move signals the company’s intent to advance 24/7 stablecoin settlement, allowing banks and merchants to conduct transactions continuously, without the constraints of traditional batch cut-offs and weekend delays.
The potential acquisition of Zero Hash or BVNK would provide Mastercard with a turnkey on-chain payment stack, enabling the company to accelerate the transition from pilot to production. This would allow for the integration of stablecoin-based settlement into Mastercard’s existing payments network, facilitating continuous processing and reducing the need for batch windows and correspondence chains.
Key Benefits of Stablecoin Settlement
Stablecoin-based settlement offers several benefits, including the ability to conduct transactions outside of traditional bank opening hours. Mastercard has already established frameworks for this, including the Multi-Token Network (MTN) and Crypto Credentials. The addition of stablecoin settlement to this stack would enable buyers to receive funds at any hour, make net commitments on-chain, and browse treasuries in minutes instead of T+1 or T+2.
For banks and processors, stablecoin settlement would reduce pre-funding requirements and daytime overdraft risk, while minimizing bottlenecks on weekends and holidays. However, it also introduces new responsibilities, such as on-chain monitoring, key management, and smart contract risk controls, which must adhere to card network standards.
Operational, Compliance, and Liquidity Challenges
While 24/7 processing is within reach, several hurdles could slow the transition. These include fiat ramp limits, operational risk, compliance and accounting reality, and market and provider restrictions. Automated clearinghouses, single euro payments area blackout periods, and banking compliance approvals can reintroduce “business hours” when switching between crypto and cash.
Key custody, smart contract errors, chain congestion, and reserve or depeg concerns require thorough audits, incident response plans, and adequate insurance coverage. Ongoing anti-money laundering (AML) and sanctions controls, travel rule requirements, dispute and chargeback handling, and enterprise resource planning or reporting workflows must be redesigned for continuous execution.
What to Expect Next
A few indicators will show whether “bank opening hours” will finally disappear. These include a completed Zero Hash acquisition, the outcome of the BVNK talks, the expansion of USDC and EURC settlement to new regions and buyers, and the evolution of MTN and Crypto Credential deployments from pilots to live bank or processor rollouts.
When these pieces fit together, execution will be based on business needs rather than the clock. As the payments landscape continues to evolve, it’s essential to stay informed about the latest developments and advancements in crypto and stablecoin settlement.
For more information on Mastercard’s move into crypto, visit Cointelegraph.
