Mastercard has obtained a New York BitLicense, the company announced, clearing the way for its work on stablecoins and tokenized deposits.
What the license covers
The BitLicense, granted by New York state financial regulators, authorizes Mastercard to engage in virtual currency business activities within the state. The company says it will use the license to support its stablecoin and tokenized deposit initiatives.
Mastercard's digital currency push
Stablecoins are digital tokens designed to maintain a stable value, often pegged to a fiat currency like the U.S. dollar. Tokenized deposits are digital representations of traditional bank deposits that can be transferred on a blockchain. Mastercard has been developing both technologies.
New York's BitLicense is a regulatory framework for companies that want to handle virtual currencies in the state. Mastercard joins other financial firms that have obtained the license since its introduction.
The company did not disclose specific products or a launch date for its stablecoin or tokenized deposit offerings.
