Share this article
Sequoia Fund Says Blockchain Could Cut MasterCard Earnings
The operators of Sequoia Fund have predicted the rise of blockchain technology could put a damper on earnings at MasterCard.
By Pete Rizzo
Updated Sep 11, 2021, 12:09 p.m. Published Feb 29, 2016, 10:33 a.m.
The New York-based operator of a major mutual fund has hinted it believes blockchain technology could be a threat to credit card network operators.
The comments came as part of Ruane, Cunniff & Goldfarb’s annual report on the performance of the Sequoia Fund, the firm’s consolidated portfolio offering. The Sequoia Fund currently holds stock in 10 publicly traded companies as part of its portfolio, with MasterCard accounting for 4.3% of its assets.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In the report, Sequoia praised MasterCard for its strong performance since its 2006 IPO, but indicated that it believes new technologies, including blockchain, will begin to affect the company’s value.
Sequoia wrote:
"MasterCard’s virtues are well-appreciated by the stock market but the evolution of mobile payment habits and the rise of blockchain ledger technology could pose longer term challenges to the company’s wildly profitable business model."
The fund has a storied track record among investors, returning three times more than the S&P 500 during its more successful runs.
In addition to MasterCard, other Sequoia Capital portfolio holdings include Berkshire Hathaway, O’Reilly Automotive and Alphabet, Google’s parent firm.
Correction: An earlier version of this article mentioned Sequoia Capital, a VC firm that is not connected to Sequoia Fund.
MasterCard image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Crypto Markets Today: Bitcoin Rises, but Risk Appetite Remains Weak
Crypto prices are little changed, with bitcoin steady after dropping back from last week’s post-Fed high while altcoins continue to underperform amid risk-off sentiment.
What to know:
- BTC rebounded from Sunday’s $88,000 low to around $89,900, though it remains well below the $94,300 it hit after the Fed’s 25 basis-point rate cut.
- More than half of the top 100 tokens are lower over 24 hours, with the CoinDesk 20 up just 0.16% and the broader CD80 down 0.77%, underscoring altcoins' continuing underperformance.
- Sentiment has slipped back into “extreme fear,” altcoin season indicators remain depressed, and bitcoin dominance continues to climb, reflecting investor preference for larger-cap assets.
Top Stories
