Only in July, Mastercard had announced a pilot project for the integration of stablecoins and with it put out its feelers in the field of cryptocurrencies. Now the US credit card provider is expanding its crypto commitment with the takeover of the Californian blockchain start-up Ciphertrace. Like its competitors Chainalysis and Elliptic, Ciphertrace specializes in analyzing money movements on the various blockchains and discovering possible suspicious payments.
Detect illegal crypto transactions
The possibility of using cryptocurrencies like Paying Bitcoin at least pseudo-anonymously also attracts hackers and cyber criminals. Digital currencies promise independence from government regulation. However, authorities also see the risk of money laundering and terrorist financing in the crypto sector. It is therefore important for law enforcement agencies, but also for traditional financial institutions, to be able to detect and track illegal transactions.
And this is exactly where companies like Ciphertrace come into play. According to their own statements, the cryptoanalysts at Ciphertrace have an overview of more than 900 crypto currencies. With a range of tools – including AI-supported – they support banks, stock exchanges and other financial institutions worldwide to conduct their business in the crypto sector and to better identify potential fraud. After the takeover, Mastercard wants to combine the technologies of the two companies – and offer the corresponding solutions and apply them to its own offer.
Mastercard: More security for cryptocurrencies
“Digital assets have the potential to reinvent commerce, from everyday activities like sending and receiving payments to transforming economies to make them more inclusive and efficient,” said Ajay Bhalla, President of Cyber & Intelligence at Mastercard. However, the rapid growth of the crypto ecosystem requires ensuring that it is trustworthy and secure. How much the acquisition of Ciphertrace cost Mastercard is not known.
