Mastercard has inked an agreement to acquire cryptocurrency intelligence startup CipherTrace for undisclosed terms in a move to combine both firms’ cyber capabilities and artificial intelligence (AI) power.
With CipherTrace, Mastercard said it will be able to differentiate its card and real-time payments framework to benefit both clients and investors worldwide, according to a Thursday (Sept. 9) press release.
Headquartered in Silicon Valley and launched in 2015, CipherTrace has insight into more than 900 cryptocurrencies and helps users boost security and fraud detection for crypto-related programs and transactions.
See also: Report: Criminals Netted $1.4B From Crypto Crimes
Ajay Bhalla, president, cyber and intelligence at Mastercard, said trust and security are paramount for the fast-growing digital asset ecosystem and the company plans to build on CipherTrace’s complementary competencies.
“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,” Bhalla said.
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Cryptocurrencies and non-fungible tokens (NFTs) are making their way into people’s daily lives, whether for investment purposes or payments of all kinds. Wider adoption will follow tighter security measures that people trust, according to the release.
See: CipherTrace Debuts Analytics Support For Binance Smart Chain
Because crypto and NFTs are new, innovative solutions and authoritative intelligence is necessary to advance the same comfortability that people have with more traditional payments and investments.
“We help companies — whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe,” said CipherTrace CEO Dave Jevans. “Our two companies share this vision to provide security and trust throughout the ecosystem.”
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CipherTrace uses its innovative technology, data analytics and algorithms to boost security and fraud monitoring activities for its clients’ cryptocurrency transactions, per the announcement. The startup works with some of the biggest financial institutions and exchanges worldwide.
The acquisition is expected to close by the end of the year, according to the release.
