Mastercard’s presence in the cryptocurrency space is growing. The payment company announced the acquisition of crypto intelligence company CipherTrace in a press release.
According to the press release, the goal is to improve Mastercard’s crypto capabilities. CipherTrace claims to have “insight into over 900 cryptocurrencies.”
According to the release, the crypto company offers its clients a service to track and protect the activity for cryptocurrency-related programs. This is how exchanges, financial institutions, banks, and others can use CipherTrace’s data analytics capabilities to “assist customers in converting on their opportunities across 7,000+ cryptocurrency entities.”
Dave Jevans, CEO of CipherTrace, stated the following about his company and its collaboration with Mastercard:
We assist businesses – whether banks or cryptocurrency exchanges, government regulators or law enforcement – in keeping the crypto economy safe. This vision of providing security and trust throughout the ecosystem is shared by our two companies. We are thrilled to be joining the Mastercard family in order to expand CipherTrace’s global reach.
According to Mastercard, trust will be an important aspect of the crypto industry as it begins to increase its levels of adoption in the form of cryptocurrencies and non-fungible tokens (NFTs). Mastercard believes that these assets will become a part of people’s daily lives.
Thus, Mastercard and CipherTrace will collaborate to develop a joint offering that will include the crypto company’s “suite of digital assets” and the payments company’s “cyber security solution.” As a result, consumers will have tools to help them manage the regulatory and compliance requirements of their cryptocurrency portfolio.
Ajay Bhalla, president of Mastercard’s Cyber & Intelligence division, commented on the acquisition as follows:
Digital assets have the potential to reimagine commerce, from simple acts like paying and receiving payments to transforming economies and making them more inclusive and efficient. With the rapid expansion of the digital asset ecosystem comes the need to ensure that it is trustworthy and secure. To accomplish this, we intend to capitalize on the complementary capabilities of Mastercard and CipherTrace.
How Mastercard Will Integrate Its Technology With A Crypto Firm
CipherTrace will assist Mastercard in its search for “continued innovation” in addition to its products and capabilities. To accomplish this goal, the companies will collaborate with numerous partners in the fintech, crypto, and public sectors.
According to the press release, Mastercard will use Artificial Intelligence (AI) and other technologies to enable its clients around the world to create digital assets and crypto-related products that comply with regulations. Businesses will be able to track the status of their real-time payment infrastructure.
According to Mastercard, the acquisition is part of the company’s larger strategy to develop new products that leverage the underlying technology that powers cryptocurrencies. The payments behemoth has already formed significant alliances in order to realize its ambitious plans.
Among them is a collaboration with Uphold, Gemini, BitPay, and others to develop cards that allow customers to spend their cryptocurrency funds. Furthermore, the company will assist in the development, testing, and support of a platform to host CBDCs, NFTs, and other digital assets.
Both Mastercard and its competitor VISA have placed significant bets in the space. According to Bitcoinist, VISA recently purchased its first NFT, in addition to a number of investments in other crypto-related companies and platforms.
At the time of writing, Bitcoin and other major cryptocurrencies are recovering from their recent crash, with some showing signs of improvement. In the daily chart, BTC is trading at $46,990, a 1.4 percent profit.