Arqit and Mastercard Enhance Digital Asset Security and Compliance for Financial Institutions
London, UK – 8 January, 2023 - Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (Arqit), a leader in quantum-safe encryption, today announced an agreement with Mastercard to deliver digital asset security and compliance product offerings for financial institutions.
Arqit’s unique Symmetric Key Agreement Platform helps secure communication links between network devices against attacks, particularly those from quantum computers. Arqit WalletSecure™ (an application product of Arqit’s quantum-safe symmetric key agreement technology) helps to reduce the risks associated with private key theft and stop higher risk transactions from being completed.
As part of the collaboration, Arqit will integrate Mastercard’s Ciphertrace Sentry to provide Virtual Asset Service Providers (VASPs) with controls, through which their customers can individually authorize every transaction. This will help to expand overall asset security and openly encourage consumers to interact more freely with them. The combination of Arqit and Ciphertrace services will help to ensure each transaction is compliant, lawful and legitimate.
Currently, if a cybercriminal gains access to a user-held private key, they can steal the digital assets within the associated wallet. As the growth in the digital assets market reaches new heights, financial services companies need to operate with digital assets securely and compliantly, providing long-term reassurance to banks for the security of these digital assets.
Ciphertrace’s advanced intelligence and analytics technology helps determine the risk of individual crypto transactions and assign a rating to any virtual asset service provider involved, based on well-established risk indicators. It also offers crypto tracing solutions to facilitate investigations.
Arqit’s WalletSecure™ offers financial institutions peace of mind in securing digital assets. Not only can Arqit’s quantum-safe encryption technology help to prevent cybercriminals from stealing digital assets (even if they are able to steal the private keys held by the user), but it also enables real-time regulatory enforcement, preventing non-compliant transactions before they occur.
David Williams, Arqit Founder, Chairman and CEO said:
“Digital Assets have entered the mainstream - with financial institutions accessing the benefits of digital asset technology for the tokenisation of payments and assets. With these commercial advantages comes a growing cybersecurity risk. Arqit can secure digital assets even if the private key is stolen. Thanks to this collaboration with Mastercard’s Ciphertrace we can provide the tools to our customers to build trust and provide organisations and enterprises with the confidence to embrace the use of secure digital assets.”
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Arqit: pr@arqit.uk
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Investor relations enquiries:
Arqit: investorrelations@arqit.uk
Gateway: arqit@gateway-grp.com
Caution About Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against the Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, and (viii) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 21 November 2023 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.