Mastercard has agreed to get cryptocurrency intelligence company CipherTrace at an undisclosed amount. CipherTrace controls over more than 900 cryptos. This will improve MasterCard’s capabilities in the world of digital assets.
CipherTrace develops tools that assist in eradicating illegal digital currency transactions. The company’s major competitors are Chainalysis and Elliptic.
Following this acquisition. Enterprise clients of Mastercard will experience CypherTrace analytics and consultation on crypto issues. “To help identify and understand their risks. And to help manage their digital asset regulatory and compliance obligations.”
“Digital assets have the potential to reimagine commerce. From everyday acts like paying and getting paid to transform economies. Thus, making them more inclusive and efficient.” Ajay Bhalla, president of cyber and intelligence at Mastercard, said in a statement. “With the rapid growth of the digital asset ecosystem comes the need to ensure it is trustworthy and safe.”
Shortly after the announcement, the Mastercard went up about 0.6%.
The primary concern with cryptocurrencies is that people transacting are anonymous. As a result, it exposes digital assets to hackers and criminals.
But, the blockchain is not only a public ledger of all digital currency transactions. And services like CipherTrace’s analyze the fund’s movement’s to establish whether they’re dubious.
Mastercard believes the deal would help its clients protect and follow regulations. Moreso, as they begin building their digital currency. The world’s top banks and crypto exchanges are using the CipherTrace platform.
This move is a pointer on how the crypto market is attracting significant corporates. Furthermore, Mastercard had earlier hinted that it would open its network to few cryptocurrencies. Yet, Visa disclosed that customers utilized approximately $1 Billion worth of crypto. Obviously through its crypto-linked payment cards.
Bitcoin was trading at $47000 on Thursday, with a 2% rise. The world’s largest crypto, slumped on Tuesday upon adoption by El Salvador as a legal tender.
Proponents of Bitcoin feel the move is an endorsement and adoption of the asset class.
Whether the acquisition of CipherTrace will also help Mastercard expand into the blockchain will be seen.