Bessie Liu

<div id="highlights-block_633c8c2384b64" class="highlights">
 <ul>
 <li>Crypto Secure is a color-coded dashboard that can identify where cardholders are purchasing cryptocurrencies</li>
 <li>Users can identify crypto exchanges, measure transaction approvals and declines, and receive insight on risk exposure</li>
 </ul>
 
</div>



In Mastercard’s latest step into crypto, the credit card behemoth is leaning on a recently acquired blockchain analytics company to do due diligence on digital asset merchants.&nbsp;



Mastercard, the company said Tuesday, is leveraging data from CipherTrace, acquired in 2021, to launch a solution that ought to keep Mastercard compliant with crypto regulation. It’s supposed to work by providing actionable information to craft risk profiles of more than 2,400 blockchain-based firms in an effort to determine approved purchases.&nbsp;



The initiative, dubbed Crypto Secure, functions as a dashboard designed to track where cardholders are purchasing crypto products. It also has the ability to identify crypto exchanges, plus measure transaction approvals and declines — as well as provide risk metrics and benchmark ratings for comparison to a peer group of financial institutions.



Ajay Bhalla, president of Mastercard cyber and intelligence, said in a statement that the launch ought to add transparency and trust to the growing business of crypto.&nbsp;



“Trust is our business and with cryptocurrency more intertwined in our daily lives this is an exciting next step in our journey,” Bhalla said.



Mastercard has been actively making strides in crypto over the past few years.&nbsp;



The payments giant recently partnered with cryptocurrency and fiat exchange hi to <a href="https://cms.blockworks.co/mastercard-hi-launch-nft-customized-debit-cards-as-nft-interest-dips/" target="_blank" rel="noreferrer noopener">launch a credit card</a> that allows users to customize their own NFT avatars.



The company also partnered with crypto exchange Binance to <a href="https://cms.blockworks.co/binance-and-mastercard-to-bring-streamlined-crypto-payments-to-argentina/" target="_blank" rel="noreferrer noopener">offer a prepaid crypto card</a> in Argentina and Middle Eastern digital asset gateway Fasset to <a href="https://cms.blockworks.co/mastercard-partners-with-fasset-to-drive-financial-inclusion-in-indonesia/" target="_blank" rel="noreferrer noopener">expand its services</a> to Indonesia. 



These efforts, alongside its expansion in blockchain technology subsidiary companies, include the following:



<ul class="wp-block-list"><li>Finicity, a financial data aggregator company</li><li>Ekata, a global customer identity verification and fraud prevention company&nbsp;</li><li>RiskRecon, a firm working to vet the security mechanisms of counterparty vendors</li></ul>



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CipherTrace

MasterCard Is Tracking Where, and How, Cardholders Buy Crypto

Ben Strack

<div id="highlights-block_617ac2d36c1e8" class="highlights">
 <ul>
 <li>Payments giant looks to offer “a safe space” for governments and private sector banks to figure out how a CBDC would work</li>
 <li>“We can’t run fast enough right now” into data privacy and authentication segment of crypto, Mastercard CEO says</li>
 </ul>
 
</div>



Mastercard is focused on facilitating crypto investments as well as readying its network for a central bank digital currency, CEO Michael Miebach said during the company’s third quarter earnings call on Thursday.



“We could not have an earnings call without talking about crypto,” Miebach said when asked about the space. “We see significant volumes in terms of people actually investing in crypto and selling crypto, so as an asset class there’s a lot going on, and I think we have a role to play to facilitate consumers wanting to do that.”



Mastercard most recently <a href="https://cms.blockworks.co/mastercard-to-offer-crypto-credit-debit-cards/" target="_blank" rel="noreferrer noopener">partnered with digital asset platform Bakkt</a> to make it easier for merchants, banks and fintechs in the US to embrace and offer cryptocurrency solutions and services. 



Miebach noted that the most likely chance for crypto to be used as a payment tool will be through a government-issued central bank digital currency. Mastercard will make its network ready to handle a CBDC if and when that happens, he added.&nbsp;



“How will a government test that? How will a country figure out between the private sector banks and the governments how to do this?” the CEO said. “That’s where our sandbox comes in; we can provide a safe space for governments and private sector banks to figure out how that would actually work.”



“Should there be a private sector stablecoin, we might also do that,” Miebach added, “but we have very strict principles on when to do this and when not.”



<h3 class="wp-block-heading">Recent acquisition will be key to company’s growth in crypto</h3>



Mastercard announced <a href="https://cms.blockworks.co/mastercard-to-acquire-crypto-intelligence-company-ciphertrace/" target="_blank" rel="noreferrer noopener">its plan to acquire</a> crypto intelligence company <a href="https://ciphertrace.com/about-us/" target="_blank" rel="noreferrer noopener">CipherTrace</a> in September. The firm previously said that the purchase would enhance its crypto capabilities for insight into more than 900 cryptocurrencies currently monitored by CipherTrace, which is funded by the US Department of Homeland Security.  



CipherTrace was founded in 2015 and has provided “blockchain forensics” for over 150 of the largest banks, exchanges, financial institutions and regulators across roughly 7,000 cryptocurrency entities.



Eric Risley, a managing partner at Architect Partners, <a href="https://cms.blockworks.co/are-tradfi-and-crypto-set-for-an-ma-explosion/" target="_blank" rel="noreferrer noopener">previously pointed</a> to Mastercard’s purchase of CipherTrace as the types of deals financial services incumbents will likely do to build their presence in crypto.



“What does CipherTrace actually do? They drive compliance and [anti-money laundering] checks into crypto transactions,” Miebach said during the earnings call. “We can’t run fast enough right now to get into this space, because a lot of other people are deep into crypto and these questions are not resolved.”

CBDC

Mastercard is Preparing its Network for CBDC

Jacquelyn Melinek

<div id="highlights-block_613a1313489d4" class="highlights">
 <ul>
 <li>“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 &amp; Intelligence at Mastercard</li>
 <li>As digital assets like cryptocurrencies and non-fungible tokens (NFTs) become more mainstream, they will require solutions and greater intelligence to scale the crypto ecosystem in the same trust and security that traditional payment methods currently have, Mastercard said</li>
 </ul>
 
</div>



Mastercard is extending its coverage into the field of digital assets with a new agreement to acquire a crypto intelligence company CipherTrace, the company announced on Thursday.



The credit card company plans to close the acquisition before the end of the year to “enhance” its crypto capabilities for insight into more than 900 cryptocurrencies currently monitored by CipherTrace, which is funded by the US Department of Homeland Security.&nbsp;



The deal will help mastercard customers and stakeholders build upon and benefit from CipherTrace’s solutions as consumers “build their own virtual asset offerings,” it said.&nbsp;



CipherTrace was founded in 2015 and has provided “blockchain forensics” for over 150 of the largest banks, exchanges, financial institutions and regulators across over 7,000 cryptocurrency entities, it said. The company said its mission is to protect financial institutions from virtual asset laundering risks and crypto-related threats, while also growing the blockchain economy by making it safer for users and trusted by the government.&nbsp;



“We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe,” said Dave Jevans, CEO of CipherTrace. “Our two companies share this vision to provide security and trust throughout the ecosystem.”



As digital assets like cryptocurrencies and non-fungible tokens (NFTs) become more mainstream, they will require solutions and greater intelligence to scale the crypto ecosystem in the same trust and security that traditional payment methods currently have, Mastercard said.&nbsp;



“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. “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.”



The integrated offering will build on CipherTrace’s suite of digital assets and Mastercard’s cyber security solutions to provide businesses with more transparency in identifying and understanding risks and to help companies manage regulatory and compliance obligations, Mastercard said.&nbsp;



CipherTrace will continue to work with partners in financial technology, crypto-wallet providers, governments and other entities, it said.&nbsp;



“The acquisition is part of Mastercard’s mission in the digital assets space to help provide customers, merchants and businesses with more choice in how they move digital value,” it said.



Earlier this week, Mastercard also announced its agreement to acquire a European open banking technology company, Aiia.&nbsp;



“The addition of Aiia anchors our European open banking efforts and allows us to continue to meet our customers where they are,&#8221; said Craig Vosburg, chief product officer at Mastercard. &#8220;As open banking continues to ignite innovation, we’re committed to providing a unique set of technology platforms, data connectivity and infrastructure combined with data privacy and security principles,” Vosburg said.&nbsp;



In July, Mastercard added seven startups to its engagement program focused on supporting fast-growing digital assets, blockchain and cryptocurrency firms as the payment company continues its push in the space, Blockworks previously <a href="https://cms.blockworks.co/mastercard-adds-crypto-startups-to-engagement-program/" target="_blank" rel="noreferrer noopener">reported</a>. 



Mastercard has developed a handful of investments, including partnerships with Uphold, Gemini and BitPay to create <a href="https://cms.blockworks.co/gemini-mastercard-to-launch-crypto-rewards-card/" target="_blank" rel="noreferrer noopener">crypto rewards cards</a>, the development of new platforms to test and support potential Central Bank Digital Currencies, as well as programs to support blockchain technology and NFTs, and the potential to support select stablecoins directly on the company’s network, it said.



Are you a UK or EU reader that cant get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.

CipherTrace

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