Zero Hash’s recently obtained MiCA licence not only enables the company to provide its stablecoin infrastructure across Europe, but also fuels speculation linking the company with a sale to Mastercard.
Stablecoin and digital asset infrastructure company Zero Hash has obtained a Markets in Crypto Assets (MiCA) licence to operate across Europe.
In a statement on November 2, Zero Hash confirmed it had received its licence from the Dutch Authority for the Financial Markets (AFM) to provide its infrastructure to companies across the European Economic Area (EEA), as well as the 27 countries in the European Union (EU).
The company said it had received “explicit permission” to provide B2B2C embedded crypto and stablecoin services to customers.
Zero Hash already provides its embedded digital asset infrastructure services to Worldpay, Stripe, and Shift4, all of which already operate across Europe. The company intends to help more banks and financial institutions embed stablecoin and crypto payment capabilities to support the growing surge in digital currency payment interest.
“Securing MiCA authorisation is a major step in our mission to make digital assets accessible in a safe, trusted way,” said Edward Woodford, Founder and CEO of Zero Hash.
“We are excited to continue to accelerate our vision that blockchain technology, which underpins digital assets and stablecoins, will become integral to financial institutions. Today, we expand that possibility into Europe under a harmonized regulatory regime with the infrastructure to support it.”
A regulatory gateway
Zero Hash Europe’s platform enables companies to integrate its services via a single API framework, enabling on-chain transfers, digital asset custody and transaction capabilities for stablecoins such as USDT, USDC, PYUSD, and RLUSD.
The company also handles the regulatory complexities of integrating their infrastructure for companies. This is significant as MiCA has only been in effect since July 2024 and many traditional finance institutions new to the crypto sector may find the regulatory process different to the process within the traditional finance.
MiCA’s rules around stablecoins have raised eyebrows due to deeming the world’s largest stablecoin, Tether’s USDT, non-compliant. The regulation separates stablecoin into two categories; e-money tokens, euro-pegged stablecoins, and asset-referenced tokens, references a basket of assets against the digital currency.
“Europe’s move to formalise crypto-asset and stablecoin regulations is generating real momentum for widespread adoption,” said Roeland Goldberg, Zero Hash Europe Management Board member.
“With regulatory clarity in place, the leading banks, fintechs, and payments platforms are actively exploring stablecoins, tokenisation and stablecoin issuance, as well as embedded crypto rails.”
In time for Mastercard’s arrival?
Zero Hash’s MiCA licence comes amid reports the company may be acquired by Mastercard.
Fortune revealed on October 29 Mastercard was closing in on a potential $1.5-2bn acquisition of Zero Hash to support its stablecoin payment plans, according to five sources familiar with the deal.
The regulatory clearance to operate in Europe, as well as having an international presence in countries such as the US, Canada, Australia and across Latin America, will only serve to increase Mastercard’s interest in the company.
Zero Hash was able to grow its international expansion off the back of a Series D-2 funding round which raised $104m. Some of the leading investors included Morgan Stanley and Interactive Brokers, which also led to new partnerships with the Canton Network and Public.
With Coinbase on the verge of completing a $2bn acquisition of BVNK, and Stripe previously holding the record for the largest stablecoin company acquisition with Bridge earlier this year, it certainly feels as if Mastercard are doubling down on the rise in interest of stablecoin payments.
