Coinbase and Mastercard Battle for Stablecoin Middleware

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Introduction

Welcome to the Tokenized newsletter, brought to you by the creators of the Tokenized Podcast Simon Taylor of Fintech Brainfood, Pet Berisha of Sporting Crypto, and Shwetabh Sameer of Molten Ventures.

We are the newsletter for institutions that need help preparing for a Tokenized future.

We run through the headlines every week, what it means for you and a market readout. Always with an institutional, business-focused perspective. 

Join us every week as we meet your Tokenization needs.

Simon’s Market Readout 💬 

The acquisition talks of BVNK by Coinbase and Zerohash by Mastercard represent a fundamental shift in how large corporations are approaching the stablecoin market. They've watched the revenue numbers. They've seen the TPV. Now they're moving with intent.

Both BVNK and Zerohash are survivors - companies that kept building through multiple crypto winters when nobody thought it was cool. That timing matters. When acquirers can see real volume and real revenue, acquisitions stop being science experiments and start being strategic imperatives.

When you think about it from acquirers’ perspective, it’s very interesting to see how they might use it.

Coinbase is going bigger on payments than most realize. If payments come onchain, Coinbase wants to be the infrastructure. They already had consumer payments and institutional capital markets capability. What they didn't have was the raw B2B payment flows that came from companies like Worldpay, DLocal, and Flywire. BVNK built exactly that - payment infrastructure for companies that move serious money, not crypto traders.

Mastercard's banks are seeking clarity on stablecoin. Mastercard spends enormous energy consulting with its banking clients, helping them navigate new products. Zerohash solves a specific institutional entry point: buy, sell, hold capability for crypto. PNC just launched this with Coinbase. The pattern is clear - banks want a simple, compliant on-ramp before they go deeper. Zerohash gives Mastercard a ready-made answer they can deploy across their entire banking network, using existing incentive structures to accelerate adoption.

Consider what Zerohash brings to the table beyond buy-sell-hold: they do stablecoins, but they also handle tokenization of real-world assets. That's the broader play. This isn't just about offering crypto trading desks to regional banks. It's about positioning for the entire tokenized economy - deposits, bonds, securities, everything that's moving onchain over the next decade.

The competitive dynamics are fascinating. Coinbase already provides the buy-sell-hold capability that is ZeroHash's bread and butter, but via a partnership model - and they proved it with the PNC launch. This is why BVNK made sense - it plugged a gap Coinbase actually had. Put those pieces together, and you see two companies making very different but equally strategic bets on where payments are headed.

Integration, not acquisition, determines winners. I've counted at least five or six acquisitions, big or small, announced in the last week alone. Every company needs a stablecoin acquisition strategy now. The hard part isn't writing the check - it's actually integrating the technology, the teams, and the workflows. Some of these acquirers will execute brilliantly. Others will stick the acquisition on a shelf and call it innovation theater. The next six to 12 months will reveal who's serious.

Watch the integration. That's where the real story unfolds.

Stories You Can't Miss 📰

🏛️ Coinbase in Late-Stage Talks to Acquire BVNK for $2 Billion

Coinbase is in late-stage talks to acquire London-based BVNK for around $2 billion, after Mastercard shifts focus to Zerohash. BVNK powers stablecoin payments for Worldpay, Flywire, dLocal, Deel, and Rapyd, processing over $20 billion annually. This fills the exact gap we mentioned earlier in the Market Readout - Coinbase had consumer payments and institutional capital markets, but nothing for B2B enterprise payment flows.

Key Points:

• Deal dynamics: Late-stage talks at $2 billion after Mastercard withdrew to pursue Zerohash - Coinbase Ventures already invested in BVNK's $50M Series B

• Client roster: Worldpay, Flywire, dLocal, Deel, Rapyd - $20 billion annualized volume, up from $10 billion in Dec 2024

• Revenue shift: Coinbase made $355 million from stablecoins in Q3 (19% of total revenue) vs. $844 million in volatile trading fees

• USDC economics: Coinbase receives 100% of reserve income on on-platform USDC and 50% on off-platform USDC. In Q3, average on-platform USDC was ~$15B

The Tokenized Take:

The $2 billion isn't just buying technology - it's buying working integrations. Worldpay and Flywire already run BVNK's infrastructure. The technical work is done, compliance is settled, payment flows are live. Building this from scratch means convincing payment processors to rip out working systems and integrate new ones. That's a 2-3 year enterprise sales grind. BVNK gives Coinbase immediate access to those payment flows.

The revenue stack is where this gets interesting. Every payment through BVNK infrastructure generates USDC balances on Coinbase's platform, which triggers reserve income sharing with Circle. Then it settles on Base, generating transaction fees. One payment, three revenue streams. Coinbase's stablecoin revenue already hits $355 million quarterly - way more predictable than trading fees. BVNK's $20B in payment volume feeding into that flywheel could move the needle significantly.

Mastercard focusing on Zerohash makes sense when you think about it. Mastercard wants infrastructure to white-label for member banks, not payment processor clients. They already are the network those processors connect to - competing for their business creates channel conflict. Coinbase needed exactly what BVNK had: payment processors as distribution channels.

We now have three distinct plays: Coinbase+BVNK targeting payment processors, Mastercard+Zerohash targeting banks, and Circle (via Stripe/Bridge) targeting merchants directly. Different distribution strategies, minimal overlap. The question becomes who integrates fastest and locks in their category before competitors catch up.

🏛️ Mastercard Pursues Zerohash Acquisition for $1.5-2 Billion

Mastercard is in late-stage talks to acquire Zerohash for $1.5-2 billion, after walking away from BVNK negotiations in October. The timing reveals the strategy: Zerohash just secured MiCA authorization from Netherlands' AFM, becoming one of the first US-based crypto infrastructure providers with European market access via a passporting notification. Plus Morgan Stanley announced a few weeks ago that Zerohash will power crypto trading for millions of E*Trade clients launching H1 2026. That's Wall Street validation plus European regulatory clearance arriving simultaneously.

Key Points:

• Valuation jump: Zerohash raised $104M at $1B valuation in September; Mastercard offering $1.5-2B five weeks later (1.5-2x premium)

• Wall Street deployment: Morgan Stanley selected Zerohash for E*Trade crypto trading (Bitcoin, Ethereum, Solana) across 15 million clients, launching H1 2026

• MiCA license: Netherlands CASP registration provides compliant stablecoin/crypto services across all EU member states via passporting

• Embedded model: Powers crypto inside Interactive Brokers, Morgan Stanley - white-label B2B2C, not direct payment processing

• Strategic investors: Morgan Stanley, Interactive Brokers, Apollo all invested in September 2025 round

The Tokenized Take:

The premium makes sense when you stack the catalysts. Morgan Stanley didn't just announce a partnership - they're deploying Zerohash infrastructure for millions of E*Trade clients. That means Zerohash already cleared Morgan Stanley's compliance, risk management, and operational reviews. Interactive Brokers runs live trading on Zerohash infrastructure right now. This answers the only question that matters for institutional buyers: "Can this pass Wall Street standards?" Two major firms already said yes.

The MiCA license arrived at the perfect moment. Zerohash's Netherlands CASP authorization provides pan-European market access through passporting rights. Building equivalent capabilities means multi-year regulatory engagement - exactly what traditional payments companies can't do quickly. For Mastercard, the European stablecoin strategy became plug-and-play. That regulatory moat is worth paying up for.

But the real fit is strategic alignment. Remember from the Coinbase story - BVNK serves payment processors like Worldpay and Flywire as clients. Mastercard already partners with those companies. Acquiring BVNK creates channel conflict. Zerohash does something completely different: it powers crypto capabilities inside banks and fintechs under their own brands. According to reports, over 200 financial institutions use Zerohash to offer branded crypto services without building compliance or custody infrastructure themselves. That's exactly Mastercard's playbook - enable member institutions, don't compete with them.

The investor-to-client conversion tells you everything. Morgan Stanley, Interactive Brokers, and Apollo invested in September's funding round, then Morgan Stanley became the flagship client weeks later. They invested because they planned to use it operationally, not for financial returns. For Mastercard, that's de-risked infrastructure – a major wealth manager already validated it through capital commitments and live deployments.

So Mastercard pays a premium weeks after Zerohash raised at $1 billion, but gets Wall Street deployments proving institutional readiness plus European regulatory access that would take years to build. Different strategy than Coinbase, same thesis: buy proven infrastructure now or spend years building while competitors lock in distribution.

🏛️ Ripple's Acquisition Spree - Building the Enterprise Crypto Stack One Deal at a Time

Ripple just announced its fourth major acquisition of 2025 - custody and wallet firm Palisade. According to sources, this brings their total M&A spending to roughly $4 billion (by external estimates). Look at the deals: Hidden Road for $1.25 billion (prime brokerage), GTreasury for $1 billion (corporate treasury software), Rail for $200 million (stablecoin payments), and now Palisade (wallet infrastructure with AMF custody license in France). Earlier Ripple acquired Metaco (custody) in 2023, which is now Ripple Custody. This isn't random dealmaking. Ripple is assembling a vertically integrated enterprise crypto bank - CFO treasury console, payment rails, custody, wallets, and prime brokerage - all under one roof.

The funding to support this expansion just closed: Ripple raised $500 million at a $40 billion valuation led by Fortress Investment Group and Citadel Securities, with participation from Pantera Capital, Galaxy Digital, Brevan Howard and Marshall Wace. This follows a $1 billion tender offer earlier this year at the same valuation. Institutional capital backing a $4 billion acquisition strategy signals conviction in the vertically integrated thesis - not just from crypto funds, but from traditional finance heavyweights.

Key Points:

• Acquisitions in 2025:  Hidden Road ($1.25 billion), GTreasury ($1 billion), Rail ($200 million), Palisade (undisclosed)

• Fresh capital: $500 million raised at $40 billion valuation led by Fortress and Citadel Securities; follows $1 billion tender offer at same valuation

• Prime brokerage launch: Ripple Prime went live November 3rd with OTC spot execution across dozens of digital assets, complementing derivatives/swaps

• GTreasury distribution: 1,000+ corporate clients (American Airlines, Goodyear, Volvo) managing $12.5 trillion annual payment volume

• Palisade additions: Wallet-as-a-service with MPC, multi-blockchain support, French custody license for EU market access

• Hidden Road scale: $3 trillion annual clearing volume across 300+ institutional clients; multi-asset prime (FX, digital assets, derivatives, fixed income)

• Payment volume: Ripple Payments platform moved $95+ billion in total volume; RLUSD stablecoin surpassed $1 billion market cap

The Tokenized Take:

The Palisade acquisition fills the custody infrastructure gap between long-term vault storage and real-time payment execution. Ripple already bought Metaco's custody technology (used by banks that manage their own keys) and Hidden Road's prime brokerage (for institutional trading and custody). Palisade adds wallet-as-a-service - lightweight, fast-deployment infrastructure for fintechs and corporates that want custody without managing complex key infrastructure themselves. Plus Palisade's French custody license provides EU regulatory access that would take years to build organically. This creates custody optionality: banks use Metaco technology (now Ripple Custody), institutions use Hidden Road prime custody, and corporates/fintechs use Palisade wallets. Different client types, different custody solutions, single vendor.

The prime brokerage launch shows why Ripple is spending $4 billion+ in M&A. When GTreasury closes (expected in the coming months), Ripple will control the treasury management software that 1,000+ corporate clients use for cash forecasting and payment routing. Those treasurers can now route payments through Rail's stablecoin infrastructure, hold balances in Palisade custody wallets, and earn yield on idle cash through Hidden Road's prime brokerage - all managed through the GTreasury dashboard they already use daily. One vendor, complete stack. That's the vertical integration bet: enterprises prefer consolidated infrastructure over managing five separate point solutions.

Compare this to competitors. Coinbase Prime dominates crypto-native institutions with regulated custody and deep liquidity - but it's crypto-only, no corporate treasury software or multi-asset prime. FalconX executed $2 trillion with strong derivatives capabilities, but lacks payment rails and CFO command consoles. Ripple is building something different: not the best prime broker or the best custody or the best treasury software, but the only vendor offering all three integrated together. The GTreasury acquisition gives them distribution (1,000+ corporate clients), and everything else feeds that distribution channel.

The question becomes execution. Ripple now operates prime brokerage, treasury software, payment rails, custody vaults, and wallet infrastructure across multiple jurisdictions with different regulatory requirements. That's operational complexity most crypto companies haven't attempted. Hidden Road's 300+ institutional clients provide the near-term proving ground. If these hedge funds and asset managers start cross-margining crypto positions alongside FX and fixed income through Ripple Prime, it validates the multi-asset prime thesis. Then watch GTreasury integration timelines when the deal closes Q1 2026. Do corporate treasurers actually route payments through RLUSD and park idle balances with Hidden Road? Or does the integration remain a theoretical capability that nobody uses?

Ripple has invested roughly $4 billion in building an end-to-end enterprise infrastructure. This integrated stack is either a competitive moat that point solutions can't replicate, or it's operational complexity that bogs down execution while focused competitors capture specific niches. The next 6-9 months should make that clear.

📰 Some More News:

🏦 Tokenization, Stablecoins & Finance

• UBS Completes Tokenized Fund Transaction Using Chainlink's DTA (Read more here)

• Tokenized Treasuries cross $8.6B as banks and exchanges push collateral use (Read more here)

• Chainlink Introduces CRE to Fast-Track Institutional Tokenization (Read more here)

• FTSE Russell Takes First Step Toward OnChain Benchmark Data With Chainlink (Read more here)

• Clearstream launches tokenized securities platform (Read more here)

• Banco Inter, Chainlink Power Real-Time CBDC Trade Settlement Between Brazil and Hong Kong (Read more here)

• Global Digital Finance unveils results of study on tokenized money market funds (Read more here)

• Pay3 Recruits AI Agents to Conduct Stablecoin Transactions (Read more here)

• Bitnomial Adds RLUSD and XRP as Margin Collateral, Expanding Crypto Derivatives Offerings (Read more here)

• Kraken unlocks crypto collateral for derivatives across the EU (Read more here)

• Ripple's RLUSD enters top 10 USD stablecoins less than year after debut (Read more here)

• How XRP and RLUSD are making Ripple the JPMorgan of the crypto industry (Read more here)

🤑 Funding and M&A

• Stablecoin-enabled payments infrastructure platform Zynk raises $5 million from Coinbase Ventures and others (Read more here)

• Stablecoin Developer Standard Money Raises $8M to Support Mainnet Rollout (Read more here)

• Donut Labs Raises $15M Seed Funding to Build AI-Powered Crypto Trading Browser (Read more here)

• Paradigm leads $7.6 million seed funding round for perp DEX aggregator Liquid (Read more here)

• Animoca Brands Eyes $1 Billion Nasdaq Debut Through Reverse Merger (Read more here)

• Cathie Wood's ARK Invest adds $12M in Bullish shares as options trading surges (Read more here)

• Tharimmune Stock Gains 30%, on $540M Capital Raise to Build Canton Coin Treasury Strategy (Read more here)

• Tom Lee's BitMine Immersion Acquires Additional $300M in Ether, Bringing Holdings to $13.7B (Read more here)

• Solana treasury firm Upexi's holdings climb 4.4% to over 2.1 million SOL (Read more here)

• Solana Treasury Firm Forward Industries Files Prospectus and Approves $1B Share Repurchase Program (Read more here)

• Bitcoin miner to AI landlord: Microsoft signs $9.7B deal with BTC miner IREN (Read more here)

💼 Government & Policy

• Banks and FinTechs Press Treasury on Compliance Gaps in GENIUS Act (Read more here)

• Coinbase Faces Flak from Traditional Bankers on Its Push for Trust Bank Charter (Read more here)

• Custodia ruling a 'speed bump' not a roadblock for crypto banks, says TD Cowen (Read more here)

• US Treasury Sanctions Web of North Korean Bankers Tied to Global Crypto Crime Operation (Read more here)

• U.S. Sanctions North Korean Bankers Over Crypto Laundering Tied to Cyberattacks (Read more here)

• EU Plans to Give ESMA Direct Power Over Crypto Exchanges (Read more here)

• Crypto lobbying surges as industry gains political footing in Washington (Read more here)

• President Trump talks crypto, corruption and Changpeng Zhao in '60 Minutes' interview (Read more here)

• SEC crypto treasury probe frozen by shutdown, but subpoenas could fly soon after government reopens (Read more here)

• EU foils €600m crypto scam (Read more here)

• Sam Bankman-Fried Appeals 25-Year Sentence, Claims He Was Presumed Guilty (Read more here)

• France wants to tax unrealized crypto holdings but also hoard 420,000 BTC (Read more here)

• BlackRock Enters Australian Bitcoin Spot ETFs Market As Competition Heats Up (Read more here)

• Minutes of the CBDC Engagement Forum - May 2025 (Read more here)

• Nasdaq Reprimands TON Treasury for $558 Million Stock Sale, Crypto Buy (Read more here)

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