Mastercard Acquires CipherTrace, Moves To Integrate Digital Asset Analytics
CipherTrace, a crypto analytics and intelligence firm, has been acquired by Mastercard, a digital payments technology firm. The acquisition aims at bolstering transparency and support for the global crypto ecosystem, as well the emergence of a new digital economy.
CipherTrace’s blockchain analytics and intelligence services provide a link between virtual currencies such as crypto assets to traditional financial services. The platform resolves difficulties in the space by providing fraud protection, anti-money laundering and financial investigation solutions. CipherTrace’s blockchain threat intelligence solutions would allow firms like Mastercard to conduct tracking and deanonymization of transactions recorded on blockchains.
“We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe. 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.” shared CipherTrace CEO Dave Jevans.
The acquisition by Mastercard would see the two firms launching an “integrated offering” for enterprise clientele that seeks to leverage their expertise and provide insight into risks and compliance frameworks for digital assets.
“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. With the rapid growth of the digital asset ecosystem comes the need to ensure it is trusted and safe. Our aim is to build upon the complementary capabilities of Mastercard and CipherTrace to do just this.” shared Ajay Bhalla, President of the Cyber & Intelligence division at Mastercard.
According to Mastercard’s official press release announcing the acquisition, the move was made “to help provide customers, merchants and businesses with more choice in how they move digital value.”
Mastercard’s recent strategies into the crypto space have led to the firm’s partnership with several other leading platforms in the industry. The payments firm recently partnered with Circle, the makers of the USDC stablecoin. Mastercard also recently expanded its accelerator program to support crypto startups. The firm has also announced that it will begin supporting “select cryptocurrencies” including stablecoins directly on its network within the year. However, the firm has not released any official communication as to which cryptocurrencies will eventually be supported.
The firm also has concurrent partnerships with Uphold, Gemini, and BitPay to create “crypto cards,” as well as to initiate the the creation of new platforms to test and support Central Bank Digital Currencies (CBDCs), alongside programs to support the broader use of blockchain technology and non-fungible tokens (NFTs).