Zerohash pursues new funding at more than $1.5 billion valuation after Mastercard drops investment plans

Crypto infrastructure providers are drawing renewed investor interest as Wall Street deepens its push into digital assets.Mastercard (MA) abandoned plans to invest in crypto infrastructure firm Zerohash following the payments giant’s $1.8 billion acquisition of BVNK, according to a person with direct knowledge of the matter.

In January, Mastercard was reported to be considering a strategic investment in the Chicago-based company even after it opted to stay independent. At the time, Zerohash was said to be in talks to raise $250 million at a $1.5 billion valuation.

Now, Zerohash is said to be raising a new funding round at an even higher valuation, according to two people with knowledge of the matter, who spoke on condition of anonymity because the matter is private.

Fortune in October reported that the payments processor was in advanced talks to acquire the digital asset infrastructure firm in a deal valued at up to $2 billion. After Zerohash withdrew, Mastercard agreed in March to buy U.K.-based stablecoin infrastructure firm BVNK.

Mastercard did not respond to a request for comment by publication time. A Zerohash spokesperson said the company doesn’t comment on fundraising conversations.

Founded in 2017, Zerohash offers APIs and embeddable developer tools that allow financial institutions and fintechs to deliver crypto, stablecoin and tokenization products.

Its platform serves more than 5 million users across 190 countries and counts Morgan Stanley, Interactive Brokers, Stripe, BlackRock’s BUIDL fund, Franklin Templeton and DraftKings among its clients.

M&A push

Crypto dealmaking has remained brisk this year as exchanges, infrastructure providers and fintech firms race to expand their digital asset capabilities through acquisitions.