As cryptocurrency interest appears to be peaking again, even blue-chip companies are coming to the party. After all, there’s a lot of money to be made in crypto. And Mastercard (NYSE:MA) appears to be the latest company to delve into this new world. Recent Mastercard crypto news has sent shares of the payments company slightly higher at the time of writing.
Today, Mastercard announced the purchase of CipherTrace for an undisclosed amount. As its name suggests, CipherTrace is a company that develops tools to help root out illegal cryptocurrency transactions. For companies looking to make a big splash in the crypto world, that sounds like a good competency to have.
Indeed, cryptocurrencies are becoming more mainstream. There’s no doubt about that. The recent acceptance of Bitcoin (CCC:BTC-USD) as legal tender in El Salvador may be the first step in a global renaissance of how currencies are thought about globally.
Accordingly, perhaps Mastercard’s move into this space isn’t surprising.
That said, let’s dive into a few things investors may want to know about this transaction.
What Investors Need to Know About Mastercard Crypto
- Mastercard’s move into cryptocurrency analytics is an intriguing one for investors.
- Indeed, as a leading payments provider, Mastercard stands to benefit from the new ways millennials choose to pay for goods and services.
- CipherTrace’s business model is one that will assist Mastercard in providing analytics and insights into more than 900 cryptocurrencies.
- These insights can help determine which transactions may be fraudulent or nefarious.
- Additionally, the security this company provides could encourage individuals unfamiliar with cryptocurrency to use Mastercard’s platform.
- Currently, no plan has been put forward with how Mastercard intends to use CipherTrace’s technology.
- However, many investors appear to be viewing this move as a step in the right direction today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.