In Breif:
- On Thursday, Mastercard announced that it had signed an agreement to buy CipherTrace.
- The partnership would help Mastercard to distinguish its card and real-time payments infrastructure by merging the technology.
- CipherTrace assists businesses and law enforcement in identifying and preventing illegal digital currency transactions.
Payment services provider Mastercard announced the acquisition of blockchain analytics firm CipherTrace to improve its own cyber security technologies and better comply with crypto regulatory rules. The firm did not disclose the amount of the deal.
Mastercard will be able to differentiate its card and real-time payments infrastructure by combining both companies technology, AI, and cyber capabilities. This would allow customers and stakeholders around the world to benefit from the solutions to protect their consumers and comply with regulations.
The main strategy is to give customers, merchants, and organisations additional options when it comes to moving digital value.
CipherTrace not only collects data in the crypto space but also releases yearly studies on the crypto ecosystem’s trends. It has also developed compliance solutions for decentralized exchanges.
“Digital assets have the potential to reimagine commerce, from everyday acts like paying and getting paid to transforming economies, making them more inclusive and efficient,” Ajay Bhalla said, President, Cyber & Intelligence at Mastercard. “Our aim is to build upon the complementary capabilities of Mastercard and CipherTrace to do just this,” he further added.
According to a survey by Mastercard released in May, 40% of individuals plan to use cryptocurrency for payments in 2022.
“We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe,” said Dave Jevans, CEO, CipherTrace. “Our two companies share this vision to provide security and trust throughout the ecosystem. We are thrilled to join the Mastercard family to scale CipherTrace’s reach across the globe,” he added further.
Mastercard established a significant presence in the crypto space. It partnered with a lot of crypto firms to provide services related to cryptocurrency. In July, Mastercard improved its card program for cryptocurrency wallets and exchanges by creating simplified cards for crypto payments.
