Traditional Finance Giants Accelerate Blockchain Integration as Bermuda Pursues Full Digital Economy

Mastercard Shifts Strategy After Zerohash Acquisition Falls Through

Mastercard is pursuing a strategic investment in blockchain infrastructure provider Zerohash after the company declined an outright acquisition offer, according to sources familiar with the discussions ^[1]. The payments giant had reportedly engaged in advanced negotiations to purchase Zerohash for up to $2 billion late last year ^[1].

Zerohash, which provides custody, settlement, and fiat on- and off-ramp services that enable fintechs and brokerages to offer digital assets without building their own infrastructure, ultimately chose to maintain its independence ^[1]. "We are not entertaining an acquisition by Mastercard. We respect the Mastercard team and look forward to scaling commercial partnerships," a Zerohash spokesperson stated, adding that "remaining independent best positions Zerohash to continue innovating for our customers" ^[1].

Despite the collapsed acquisition, discussions about a potential strategic stake continue, which would allow Mastercard to gain exposure to Zerohash's technology and client base without assuming full control ^[1]. The move aligns with a broader trend of traditional finance firms entering the digital assets sector, with industry observers noting that investors now favor established infrastructure companies over speculative tokens ^[1].

Zerohash recently achieved a $1 billion valuation and has secured partnerships with major financial institutions, including Morgan Stanley, which gained direct access to crypto market infrastructure including liquidity, custody, and settlement services through its collaboration with the firm ^[1].

Mastercard has previously demonstrated its commitment to the crypto sector through a major partnership announced last April with Kraken, enabling Bitcoin and cryptocurrency payments across the UK and Europe at over 150 million Mastercard-accepting merchants ^[1]. The company has also been linked to potential acquisitions of other crypto firms, including London-based stablecoin payments platform BVNK ^[1].

Bermuda Announces Ambitious Blockchain Economy Transformation

In a separate but equally significant development, Bermuda has announced plans to become the world's first country with a fully blockchain-organized economy ^[2]. The island nation revealed the initiative on the sidelines of the World Economic Forum in Davos, securing support from major cryptocurrency companies Coinbase and Circle, which will provide blockchain infrastructure, stablecoin technology, and enterprise solutions ^[2].

The comprehensive plan envisions digital assets serving as everyday financial infrastructure across payments, banking services, and insurance ^[2]. The initiative aims to bypass the high costs of traditional payment systems that particularly burden small and medium-sized businesses, with stablecoins like USDC enabling fast, cost-effective, and US dollar-denominated transactions that are already being tested in initial pilot projects on the island ^[2].

Bermuda has positioned itself as a regulatory pioneer in digital assets since 2018, when it introduced the Digital Asset Business Act, establishing a comprehensive legal framework ^[2]. Circle and Coinbase were among the first companies to receive licenses under this framework, with Coinbase obtaining its Bermuda license in 2023 ^[2].

Implementation and Long-Term Vision

The Bermuda initiative includes multiple implementation phases: government agencies will test stablecoin payments, financial institutions will integrate tokenization solutions, and citizens will be introduced to digital financial systems through nationwide educational programs ^[2].

The government expects the blockchain-based infrastructure to deliver lower transaction costs, improved access to global financial markets, and stronger local value creation over the long term ^[2]. Coinbase CEO Brian Armstrong's presence at Davos could provide additional momentum for the project, particularly as the company advocates for cryptocurrency legislation in the United States ^[2].

Both developments signal accelerating institutional adoption of blockchain technology, with traditional finance seeking strategic positioning while progressive jurisdictions implement comprehensive digital asset frameworks.