Digital asset infrastructure firm Zerohash is looking to raise new funding at a valuation north of $1.5 billion. The move comes as Mastercard has pulled out of its planned investment in the company, leaving Zerohash to navigate a shifting market without the backing of one of the world's largest payment processors.
Why the valuation matters
Zerohash's pursuit of a valuation above $1.5 billion signals the company's confidence in its growth trajectory — even as the broader digital asset sector faces headwinds. The company builds infrastructure for tokenized assets and blockchain-based finance, an area that has attracted both enthusiasm and regulatory scrutiny.
Hitting that valuation would place Zerohash among the more highly capitalized players in the space. But it also means finding investors willing to write large checks at a time when many venture firms are pulling back from crypto-related bets.
Mastercard's reversal
Mastercard had previously indicated it would invest in Zerohash as part of a push into digital asset services. The card network has been experimenting with crypto payments and blockchain settlement, but the decision to drop those plans suggests a change in priorities.
Mastercard didn't give a public reason for walking away. The company hasn't commented on the matter. Its exit leaves Zerohash without a marquee strategic investor — one that could have provided not just capital but also credibility with traditional financial institutions.
The fundraising landscape
Zerohash's search for new backers comes as the broader market for digital asset infrastructure funding shows signs of both stress and opportunity. On one hand, some institutional investors remain wary after the collapse of FTX and other crypto firms. On the other, the push toward tokenization of real-world assets — from bonds to real estate — continues to draw interest from big banks and asset managers.
For Zerohash, the challenge is convincing investors that its platform can scale reliably while staying compliant with evolving regulations. The company operates in a sector where rules vary sharply by jurisdiction, and where enforcement actions have increased.
What Zerohash is building
The company provides technology for issuing, trading, and settling digital assets. Its clients include financial institutions looking to move beyond pilot projects into live deployments. Zerohash has positioned itself as a neutral infrastructure layer, not a exchange or wallet provider. That distinction matters: it means the company doesn't directly handle customer funds, which could reduce regulatory risk.
Still, the infrastructure layer faces its own set of risks. If a client's tokenized asset runs into legal trouble, Zerohash could face questions about its role. The company has said it works closely with regulators to ensure compliance, but it hasn't disclosed which jurisdictions it's licensed in.
What comes next
Zerohash needs to close a funding round, and soon. The company hasn't said when it expects to finalize the raise or who it's in talks with. Without Mastercard's commitment, the terms may shift — and the valuation target could prove harder to reach.
Potential investors will want to see evidence of revenue growth, client wins, and a clear path to profitability. They'll also want to know whether other big financial firms are willing to step in where Mastercard stepped out.
