Credit card giant Mastercard (NYSE: $MA) has secured a BitLicense from the New York State Department of Financial Services (NYDFS).
The license gives the company approval to operate digital asset activities under one of the strictest crypto regulatory frameworks in the U.S., including in financial centre New York City.
Mastercard said in a news release that the BitLicense will help its push into blockchain-based payments and settlement infrastructure.
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The company is deepening its involvement with stablecoins and tokenized payments, betting that blockchain networks will help lower costs and speed up money transfers.
New York’s BitLicense framework, introduced in 2015, requires that companies meet strict standards around capital reserves, cybersecurity, compliance, and consumer protections.
Companies operating under the license face ongoing regulatory oversight from the New York State Department of Financial Services.
Mastercard joins a small group of firms that now have a BitLicense, including Galaxy Digital (NASDAQ: $GLXY) and Strike.
Earlier this year, Mastercard agreed to acquire stablecoin payments firm BVNK for $1.8 billion U.S., a deal analysts view as a sign that stablecoins are becoming part of mainstream finance.
Stablecoins are cryptocurrencies whose value is pegged to another asset, usually the U.S. dollar.
MA stock has declined 14% over the past 12 months to trade at $494.05 U.S. per share.