Mastercard secured a New York BitLicense enabling it to issue and support stablecoins within the state’s regulated financial framework. The move positions Mastercard alongside SoFi, which launched SOFI USD for 15 million customers, and Block, which rolled out stablecoins to 60 million Cash App users, fueling competition in blockchain payments.
Mastercard received a BitLicense from New York regulators, granting its digital payments unit authority to issue, custody and process stablecoins under a regulated framework. This approval follows a rigorous application process that few financial firms have completed, positioning Mastercard for expanded blockchain-based infrastructure.
Mastercard’s licensing milestone coincides with SoFi launching its SOFI USD stablecoin for 15 million users across Ethereum and Solana and Block extending stablecoin support to 60 million Cash App customers. These parallel initiatives highlight an intensifying rivalry among established payment providers to deploy dollar-pegged digital assets.
The BitLicense enables Mastercard to integrate stablecoins into its network, potentially reducing transaction costs and accelerating settlement times. By leveraging blockchain rails for cross-border and domestic payments, Mastercard can diversify revenue streams and strengthen its digital payments ecosystem.
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