Mastercard will be able to track cryptocurrency payments thanks to the CipherTrace purchase.
Mastercard purchased CipherTrace to detect fraud, extend its crypto strategy, and spur innovation.
Mastercard uses CipherTrace’s Data Analytics Will.
Mastercard, one of the largest card payment firms globally, has made a new cryptocurrency purchase.
The payments business said it would use CipherTrace’s analytics capabilities to improve crypto asset protection and fraud detection.
CipherTrace is one of the leading on-chain analytics businesses, having several regulators among its clients. For example, to track unlawful bitcoin transactions, it has collaborated with banks, cryptocurrency exchanges, government authorities, and law enforcement organizations worldwide.
Ajay Bhalla, President of Cyber & Intelligence at Mastercard, commented on the acquisition:
“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.”
According to the press release, the purchase would help Mastercard improve its fraud monitoring for crypto-related initiatives. By acquiring CipherTrace, the payments company will combine the data knowledge it has acquired in the card payments industry with the rapidly developing crypto area. This information will aid Mastercard in developing solutions that are more compliant with international payment laws.
CipherTrace’s insights will also help the payments company collaborate with its partners to drive crypto innovation. For example, Mastercard is developing a crypto strategy to compete with Visa, its main card payment processing industry competitor. Visa has a strong presence in the crypto world, has partnered with several crypto businesses to issue payment cards, enable stablecoin payments, and even purchase NFTs.
Mastercard has recently caught up and has undertaken several crypto-related investments. It’s also collaborated with Uphold, Gemini, and BitPay to develop crypto cards, and it’s following Visa’s example by allowing USDC payments to be made directly on its network.