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The stablecoin sector, valued at over $300 billion and processing $46 trillion in annual transactions, is no longer a crypto niche—it’s becoming the backbone of global payments, drawing in traditional finance behemoths eager to harness its speed, low costs, and borderless potential. In a flurry of announcements underscoring this convergence, Mastercard is reportedly in late-stage talks to acquire Chicago-based infrastructure startup Zerohash for up to $2 billion, while Visa has unveiled plans to expand support for four cross-chain stablecoins, amplifying its crypto payment capabilities. These moves—detailed in Fortune Crypto and AOL reports on October 29, 2025—signal a pivotal escalation in the arms race between the dueling payment giants, as they vie to integrate stablecoins into everyday commerce, remittances, and DeFi. With sectors like cross-border payments ($150 trillion globally) ripe for disruption, this competition could slash fees by 90% and onboard billions, but regulatory hurdles and competition from incumbents like PayPal’s PYUSD will test their ambitions. As Mastercard and Visa bridge TradFi and blockchain, the $10 trillion Asian remittance market looms large, positioning stablecoins as the next fintech frontier.
Zerohash Acquisition to Power Stablecoin Infrastructure
Mastercard, the $450 billion payments colossus, is reportedly nearing a deal to snap up Zerohash, a 2017-founded Chicago fintech specializing in blockchain and stablecoin plumbing, for $1.5 billion to $2 billion—its largest crypto acquisition to date. According to five sources cited in Fortune Crypto’s October 29 report, the confidential talks are in final stages, with the deal potentially closing by Q1 2026 pending regulatory nods. Zerohash, backed by $40 million from investors like Dragonfly Capital, provides APIs for fiat-to-crypto ramps, custody, and compliance, powering platforms like Stripe and Brex while handling billions in stablecoin flows.
This move aligns with Mastercard’s escalating crypto playbook: From 2020’s first stablecoin settlements to partnerships with Circle (USDC issuer) and Paxos for PYUSD issuance, the company has processed over $25 billion in crypto-linked transactions. Zerohash’s infrastructure would supercharge this, enabling seamless stablecoin integrations for merchants and remittances, slashing cross-border costs from 6% to under 1%. “Mastercard is positioning itself as the bridge between fiat and crypto,” noted analyst Nic Carter of Castle Island Ventures, emphasizing how the acquisition could embed stablecoins into Mastercard’s 3.3 billion card network.
The deal follows a near-miss with BVNK, a UK stablecoin infrastructure firm that Coinbase acquired in August 2025 for $1.2 billion, underscoring the sector’s heat. If finalized, Mastercard’s entry would challenge Visa’s momentum, potentially accelerating a $10 trillion tokenized asset market by 2030, per BCG estimates. However, antitrust scrutiny from the FTC, amid DOJ probes into payment monopolies, could delay closure, as could integration challenges in scaling Zerohash’s tech for global compliance.
Visa’s Expansion: Four Stablecoins Across Chains for Cross-Border Dominance
Not to be outdone, Visa—boasting a $550 billion market cap and 4.4 billion cards in circulation—announced on October 29 its intent to broaden support for four stablecoins across multiple blockchains, as revealed in its Q4 FY2025 earnings call. CEO Ryan McInerney highlighted the move as pivotal for “fostering a more efficient, inclusive global payment system,” with stablecoins enabling near-instant settlements at fractions of traditional fees. The expansion builds on Visa’s 2020 crypto foray, where it processed its first USDC settlement, and now includes four unnamed tokens (likely USDC, USDT, PYUSD, and a euro-pegged variant) on chains like Ethereum, Solana, Polygon, and Avalanche.
McInerney emphasized stablecoins’ role in underserved markets: “We see massive potential in using stablecoins to extend financial services globally and enhance cross-border efficiency,” particularly in regions with volatile currencies where remittances cost up to 7%. Visa’s internal data shows a fourfold spike in stablecoin-linked card usage year-over-year, processing $25 billion since 2020 in Bitcoin, Ethereum, and stablecoin transactions. Pilots in Sub-Saharan Africa via Yellow Card have slashed remittance times from days to seconds, while used card payments now convert stablecoins directly to fiat for merchants, bypassing manual ramps.
This comes amid Visa’s Q4 revenue boom: Net income soared 12% YoY to $4.9 billion, fueled by digital payment adoption and blockchain integrations. The expansion targets the $150 billion Asian remittance corridor, where stablecoins could capture 15-20% by 2027, per McKinsey, while programmable payments automate supply chains for clients like Walmart. Yet, risks include depegging events (e.g., Terra’s 2022 $40 billion wipeout) and regulatory flux, with the EU’s MiCA mandating 1:1 reserves by 2026.
Race for the Next Payment Layer
The parallel advances by Mastercard and Visa reflect a broader frenzy in the $300 billion stablecoin space, where volumes rival Visa and PayPal combined at $46 trillion annually, up 87% YoY per a16z’s 2025 report. Stablecoins—digital assets pegged 1:1 to fiat like the USD—offer borderless, 24/7 transfers at near-zero fees, exploding from $5 billion in 2020 to today’s dominance. Mastercard’s Zerohash bid follows Stripe’s $1.1 billion Bridge acquisition in September, which tokenized $500 million in U.S. Treasuries, while Visa’s four-stablecoin push echoes its 2024 PYUSD integration with PayPal.
In Asia, where $7.5 trillion in stablecoin flows underscore remittance dominance, these moves could disrupt the $1.5 trillion digital payments pie. Ant Group’s stalled Hong Kong yen stablecoin and JD.com’s retreat highlight Beijing’s caution, but Singapore’s Project Orchid pilots and Japan’s JPYC launch signal regional momentum. Globally, the GENIUS Act’s July 2025 U.S. framework has unlocked $175 billion in ETFs, as BlackRock and Fidelity tokenize assets, blurring TradFi-crypto lines.
Engagement metrics soar: Visa’s stablecoin-linked cards surged 4x YoY, while Mastercard’s pilots with Circle processed $2 billion in Q3. Yet, challenges persist: Regulatory silos (e.g., EU MiCA vs. U.S. patchwork) and depeg risks (USDT’s 2022 wobble) demand robust reserves—both firms emphasize 1:1 backing to build trust.
Conclusion
Mastercard’s $2B Zerohash chase and Visa’s four-stablecoin expansion—unveiled October 29, 2025—herald a full-court press on the $300B sector, fusing payment behemoths with crypto’s speed to conquer $150B in remittances and beyond.
As Stripe and PayPal circle, these moves could slash costs 90% and onboard billions, but regulatory mazes and depeg specters loom. For the $46T stablecoin economy, it’s TradFi’s crypto endgame: Efficiency reigns, but only if innovation outpaces oversight. Watch Q1 2026 for deal closures—the payments revolution just revved up.
