Crypto infrastructure provider Zerohash is pursuing a new funding round at an even higher valuation after Mastercard dropped its investment plans, according to two people with knowledge of the matter who spoke on condition of anonymity because the discussions are private.

Mastercard had been considering a strategic investment in Zerohash as recently as January, when the Chicago-based company was reportedly in talks to raise $250 million at a $1.5 billion valuation while opting to remain independent. However, those plans fell through after Mastercard pivoted to acquire BVNK, a U.K.-based stablecoin infrastructure firm, for approximately $1.8 billion in March.

The payments giant had previously been in advanced talks to acquire Zerohash directly in a deal valued at up to $2 billion as recently as October 2025, according to Fortune reporting at the time.

Market Context

Zerohash's fundraising push comes amid heightened institutional interest in crypto infrastructure plays. The broader M&A landscape for digital asset firms has accelerated significantly this year, with exchanges, fintechs and traditional financial institutions competing aggressively for custody, settlement, tokenization and stablecoin capabilities.

Recent notable transactions include Payward Inc., the parent company of Kraken, agreeing to acquire derivatives platform Bitnomial, while Bullish—the owner of CoinDesk—announced a $4.2 billion deal to buy Equiniti, combining transfer agency services with tokenization infrastructure. Analysts expect consolidation to continue as firms race to build out comprehensive digital asset offerings.

Analysis

The timing of Zerohash's pursuit of fresh capital reflects Wall Street's deepening commitment to digital assets despite regulatory uncertainty. The company occupies a strategic position as an API and embeddable developer tools provider, enabling financial institutions and fintechs to offer crypto, stablecoin and tokenization products without building infrastructure from scratch.

Zerohash's ability to attract high-profile clients including Morgan Stanley, Interactive Brokers, Stripe, BlackRock's BUIDL fund, Franklin Templeton and DraftKings underscores the institutional demand for turnkey crypto solutions. The company's platform currently serves more than 5 million users across 190 countries, providing scale that aligns with what large financial institutions require.

The collapse of the Mastercard investment talks highlights the competitive dynamics shaping the space. By acquiring BVNK instead, Mastercard signaled its preference for stablecoin infrastructure—a rapidly growing segment given the proliferation of dollar-pegged tokens in institutional applications.

Key Numbers

- Zerohash's previous valuation: $1 billion (September 2025 Series D-2 round)

- Prior fundraising target with Mastercard: $250 million at $1.5 billion valuation

- Failed acquisition talks valuation: Up to $2 billion (October 2025)

- BVNK acquisition price by Mastercard: Approximately $1.8 billion (March 2026)

- Platform users served: More than 5 million across 190 countries

- Series D-2 amount raised: $104 million in September 2025, led by Interactive Brokers

What to Watch

Zerohash has not disclosed specific terms of its new funding round or timeline for closing. The company declined to comment on fundraising conversations. Any deal would mark a significant vote of confidence from institutional investors at a time when crypto infrastructure remains a battleground for traditional finance players.

Tracked clients including Morgan Stanley, Interactive Brokers and BlackRock may provide indicators of demand for Zerohash's services in coming quarters. Additionally, any further consolidation among crypto infrastructure providers could reshape the competitive landscape—particularly if larger competitors pursue vertical integration strategies similar to Mastercard's BVNK acquisition.