MasterCard, an electronic payment company, announced its acquisition of CipherTrace.
According to the official announcement , the terms of the deal have not been announced, but the acquisition will come as a mutually beneficial step.
It is worth noting that CipherTrace provides crypto-market-oriented tools that help in tracking transactions easily on the blockchain network.
With the company’s offered solutions, cryptocurrency transactions are no longer invincible and bad actors can easily be prosecuted by tracking digital fingerprints and transaction history.
The CipherTrace model helps many stakeholders in the cryptocurrency ecosystem including crypto exchanges, banks and regulators to track events in the space in an effort to ensure compliance with regulations.
Dave Jeffans, CEO of CipherTrace, said:
We help businesses – whether it’s banks, cryptocurrency exchanges, government regulators, or law enforcement – to keep the crypto economy safe.
Our company carries this vision to provide security and trust throughout the ecosystem.
We are excited to join the MasterCard family to expand CipherTrace’s reach around the world.
While the deal enhances MasterCard’s access to dynamic value creation around the world, CipherTrace is in a position to benefit from the deep reach of funding and industry reach that MasterCard offers.
Building trust in an unreliable world:
The cryptocurrency ecosystem is an unreliable world, and the partnership between MasterCard and CipherTrace aims to build trust in this emerging industry.
Mr. Ajay Bhalla, Head of Technology Office, MasterCard said:
Cryptocurrencies have the potential to reimagine commerce, from everyday chores like paying and making money to transforming economies, making them more inclusive and efficient.
With the rapid growth of the digital asset ecosystem, comes the need to ensure that it is reliable and secure.
Our goal is to build on the complementary capabilities of MasterCard and CipherTrace to do just that.
The mainstream adoption of cryptocurrencies will continue to see flaws and imperfections especially when regulators or market watchers cannot track events in the space.
The new partnership between MasterCard and CipherTrace will attempt to allay the authorities’ concerns while helping to re-establish the standards upon which transparency can be built in the cryptocurrency ecosystem.
The acquisition is expected to expire at the end of this year.