Shares of Silicon Valley chip designer Rambus (RMBS - Get Report) were on the rise Tuesday after a deal by one of the world's largest credit card companies to acquire some of its blockchain technologies.
Rambus' stock price jumped 2.6% to $11.85 a share on news of a deal by Visa (V - Get Report) to acquire the firm's token services and ticketing businesses, formerly Bell ID and Ecebs LTD, used to both secure the movement of money and financial transactions.
Visa's stock, in turn, also saw a bump from the announcement, edging up 0.31% to $174.39.
Visa said it plans to use the technology it is buying from Rambus to bolster its network tokenization capabilities with the "local and account tokenization technology" developed by the firm.
Tokenization is used to make financial transactions safer and more secure and combat hackers by replacing payment information with a "unique identifier" or "token," Visa noted in a press statement.
In particular, the deal will enable Visa to significantly expand its use of tokenization to "all types of transactions beyond Visa cards, including those on domestic card networks, account-based and real-time payments systems."
"As the way people and businesses pay and get paid continues to evolve, the addition of Rambus' technology will allow us to deliver greater security beyond the card to support more transactions, payments systems and participants," said TS Anil, a Visa's global head of payment products and platforms. "Going forward, we will apply these expanded capabilities, expertise and scale to help further all forms of global commerce."