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Payment giant Mastercard acquires blockchain analytics start-up CipherTrace

Updated: Jul 25, 2024
Published: Sep 9, 2021
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Traditional payment companies are starting to expand their presence in the cryptocurrency space, and Mastercard has now made a huge acquisition.

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Mastercard agrees to buy CipherTrace

Payment giant Mastercard announced earlier today that it had reached an agreement to acquire blockchain analytics start-up CipherTrace. Mastercard didn’t reveal the amount involved in the deal, but it shows a growing trend of traditional payment companies entering the cryptocurrency space.

In a blog post earlier today, Mastercard said, “Mastercard (NYSE: MA) will extend its capabilities deep into the field of digital assets with an agreement to acquire CipherTrace, a leading cryptocurrency intelligence company with insight into more than 900 cryptocurrencies.”

Mastercard said it intends to integrate offerings that would build on CipherTrace’s suite of digital assets and Mastercard’s cyber security solutions. The services would provide businesses and organizations with greater transparency. This feature would help them identify and understand the risks involved and to help manage their digital asset regulatory and compliance obligations.

According to Mastercard, the acquisition would help the provide services to businesses in various areas such as NFTs and cryptocurrency investments. Ajay Bhalla, president, Cyber & Intelligence at Mastercard, noted that “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.”

Traditional payment companies are going big on crypto

Traditional payment companies like Mastercard, Visa and PayPal are going big on cryptocurrencies. Visa has been one of the most active traditional financial institutions in the cryptocurrency space.

Visa is currently working on a service that would allow Brazilian banks to provide cryptocurrency services to their customers. Furthermore, the payment giant also wants to boost crypto card payments in the Latin American country.

Visa also bought a CryptoPunk NFT for $150,000. In the first half of 2021, crypto-linked card usage on Visa surpassed $1 billion. This figure could have been one of the major catalysts that convinced Visa and other payment giants to go big on cryptocurrencies.

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