The acquisition of CipherTrace represents an opportunity for Mastercard to offer mass services in the cryptocurrency sector.
This was said by the CEO of Mastercard, Michael Miebach when explaining the company’s third-quarter results.
Mastercard, plans to expand into the cryptocurrency sector
Mastercard bought CipherTrace in September. The aim of the acquisition was to have in-house support for the implementation of transparency in digital assets.
CipherTrace is an intelligence company that monitors more than 900 cryptocurrencies. It provides support to crypto companies, especially with regard to KYC and AML issues. In the past, it had also worked with Binance.
Essentially, with CipherTrace at its core, Mastercard has declared its willingness to increase security and transparency when it comes to cryptocurrencies.
As these are two central and controversial issues, it is clear that their resolution can only lead to an expansion of the sector, by virtue of the trust gained.
The fact that Mastercard is aiming to exploit cryptocurrencies is also demonstrated by its recent partnership with Bakkt, which will bring Bitcoin and crypto to Mastercard’s payment circuits.
Michael Miebach stated in this regard:
“So it’s massive services opportunity. CipherTrace, 900 cryptocurrencies. What does CipherTrace actually do? They drive compliance and AML checks into crypto transactions. We can’t run fast enough right now to get into the space, because a lot of other people are deep into crypto, and these questions are not resolved”.
According to the CEO, Mastercard is synonymous with security. That’s why it will have to ensure high standards when it comes to cryptocurrencies as well, complying with KYC and AML aspects first.
These are not insignificant issues, and crypto businesses will sooner or later have to come to terms with them, also due to the will of the authorities, who fear the pseudo-anonymity of the sector, which also leaves room for illegal activities.
Mastercard in the crypto sector
Mastercard has long been active in the crypto and blockchain sector. Many cryptocurrency businesses issue cards on the Mastercard circuit that allow crypto to be converted into fiat for instant spending.
But the company also seems to want to get involved in state digital currencies. Last September, it announced the launch of a test platform for CBDCs, another opportunity the payments giant clearly doesn’t want to miss.
In this regard, CEO Michael Miebach has confirmed that Mastercard intends to be ready when digital state currencies become a reality.