Mastercard announced plans to acquire analytical cryptocurrency company CipherTrace

Payment system Mastercard agreed to purchase CipherTrace, a company engaged in analytics related to the security of blockchain technologies and cryptocurrencies in particular. The move marks the “thaw” with which major financial companies are beginning to relate to cryptoassets.

Californian CipherTrace is known to develop tools to help businesses and law enforcement agencies detect illegal digital currency transactions. The company’s competitors include New York-based Chainalysis and London-based Elliptic. Financial terms of the deal were not disclosed.

“Digital assets have the potential to help reimagine commerce, from day-to-day processes like payments and moving money to transforming economies into more inclusive and efficient formats. With the rapid growth of the ecosystem of digital assets comes the need to ensure their trust and security. “, – declare in Mastercard.

A key problem with Bitcoin and other cryptocurrencies is the anonymity of the participants in the transactions. Thanks to this, digital assets have become the favorite currency of hackers and other criminals. Nevertheless, blockchain technology allows indirectly evaluating transactions, and services like CipherTrace help to identify suspicious fund movements.

Mastercard believes that the deal will help protect customers and ensure that their actions comply with existing legal regulations when creating and offering their own cryptocurrencies. According to CipherTrace, the company’s platform is used by some of the largest banks and crypto exchanges in the world.

The purchase of CipherTrace is one of the indicators of the growing interest of large corporations in the crypto market. Mastercard itself claims that this year the payment system will begin to support transactions in some cryptocurrencies, and the rival, the Visa payment system, recently reported that its cards with linked digital wallets have made transactions worth more than a billion dollars.

Bitcoin was worth about $ 47,000 on Thursday. The world’s most popular cryptocurrency has surged in value since Tuesday, when El Salvador recognized it as an official means of payment. Cryptocurrency proponents saw this as only the first step leading to wider acceptance of cryptocurrencies in the world at the state level.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

Add Comment

Click here to post a comment