Mastercard acquires blockchain forensics company Cipher Trace

Global payments giant Mastercard has recently purchased blockchain analytics startup Cipher Trace, a move seen by many as the company’s strategy to expand its presence in the crypto industry. 

Cipher Trace describes itself as a company that aims for greater security, transparency, and trust to digital assets across the ecosystem. The company claims to be the world’s first blockchain forensics team that provides crypto tracking and investigation services. 

To provide more efficiency for the crypto community, it has recently rolled out an open-source program called “Travel Rule Information Sharing Architecture”, or TRISA for short. 

This program allows virtual assets providers to share information between parties in transactions. Through this service, TRISA can help them meet the intergovernmental compliance force FATF’s (Financial Action Task Force) travel rules for crypto. 

Mastercard’s crypto ventures

Last February, Mastercard announced that it would support selected cryptocurrencies and in April, it rolled out its first crypto rewards credit card program in partnership with crypto exchange Gemini. 

In July, the payments giant said that it would expand its crypto credit card business by collaborating with top banks and stable coin issuers. The company’s chief financial officer Vasant Prabhu said that crypto-linked card usage has already reached $1 billion in the first half of 2021. 

Mastercard’s major competitors, VISA, American Express, and PayPal, have also recognized the massive potential of cryptocurrencies and started their own crypto ventures as well. 

Cipher Trace Chief Executive Officer David Jevans said that one of the biggest risks that financial institutions, especially banks, may face today is money laundering involving cryptocurrencies. 

A closer look at Mastercard

Mastercard is an American multinational financial services company headquartered in New York City. Its primary business is to process payments between the banks of merchants and the card-issuing banks or credit card unions of the purchasers. 

 

Image courtesy of Cointelegraph News/YouTube

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