Mastercard Inc. said Thursday it has agreed to buy a cryptocurrency-intelligence company in an effort to accelerate and expand its crypto-related strategy.
Payments-company Mastercard said it would extend its capabilities in the field of digital assets with a deal to buy CipherTrace for an undisclosed amount.
CipherTrace develops cryptocurrency Anti-Money Laundering, cryptocurrency forensics, and blockchain threat intelligence solutions.
CipherTrace was founded in 2015 by experienced Silicon Valley entrepreneurs with deep expertise in cybersecurity, eCrime, payments, banking, encryption, and virtual currencies.
“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,” said Ajay Bhalla, president of cyber and intelligence at Mastercard.
CipherTrace’s platform helps customers bolster security and fraud monitoring activities for crypto-related programs, providing solutions for banks, exchanges and other financial institutions. Mastercard said the company has insight into more than 900 cryptocurrencies.
Mastercard’s U.S. credit purchase volume was $837 billion at the end of December 2020, down from $909 billion the previous year.
There were 249 million Mastercard credit cards in the U.S. and 725 million cards in the rest of the world at the end of March 2021
The transaction is expected to close before the end of the year, pending certain conditions, Mastercard said.