On September 9, 2021, Mastercard announced that it will extend its capabilities deep into the field of digital assets with an agreement to acquire CipherTrace, a leading cryptocurrency intelligence company with insight into more than 900 cryptocurrencies. The integrated offering will build on CipherTrace’s suite of digital assets and Mastercard’s cyber security solutions to provide businesses with greater transparency to help identify and understand their risks and to help manage their digital asset regulatory and compliance obligations. The terms of the agreement were not disclosed. Wilson Sonsini advised Mastercard on the transaction, which is expected to close by the end of this year.
The acquisition enables Mastercard to combine the technology, AI, and cyber capabilities of both companies to differentiate its card and real-time payments infrastructure, allowing customers and stakeholders globally to build upon and benefit from the solutions to protect their consumers and comply with regulations as they build their own virtual asset offerings. CipherTrace will also help drive continued innovation with a diverse range of partners, such as fintechs, crypto-wallet providers, and governments, while allowing the company to deliver on the principles it has established for all blockchain-related programs.
The deal is part of Mastercard’s strategy in the digital assets space to help provide customers, merchants, and businesses with more choice in how they move digital value. It follows a number of investments the company has made, including partnerships with Uphold, Gemini, and BitPay to create crypto cards; the creation of new platforms to test and support Central Bank Digital Currencies; programs to support the broader use of blockchain technology and NFTs; and the potential to support select stablecoins directly on its network.
The Wilson Sonsini team advising Mastercard in the transaction includes:
M&A
Martin Korman
Brian Keyes
Stacy Lee
Katherine Fuller
Privacy and Cybersecurity
Cédric Burton
Matt Staples
Laura De Boel
Daniel Chen
Carol Evrard
Dantam Le
Michael O’Brien
Edward Ruse
Technology Transactions
Adam Shevell
Scott McKinney
Ben Hawkins
Allegra Sachs
Whitman Shaw
Delaware Corporate
Amy Simmerman
Adrian Broderick
Tiphanie Cascella
National Security
Stephen Heifetz
Seth Cowell
Jonathan Davey
Employee Benefits and Compensation
David Thomas
Michael Montfort
Employment Litigation
Rebecca Stuart
Heather Diles
Complex Litigation and Investigations
Tarek Helou
Andy Cordo
John Roberts
Stephen Cheng
Real Estate
Sierra Bunnell
For more information, please see Mastercard’s press release.