The New York State Department of Financial Services (NYDFS) has officially granted Mastercard a BitLicense to legitimize its venture into cryptocurrency payments.
The license, which was introduced in August 2015, is considered the “gold standard” for cryptocurrency oversight. They carry the most stringent compliance, cybersecurity and consumer protection requirements in the industry.
Through it, Mastercard can now support blockchain-based settlements for a portion of its 3.1 billion global cardholders. This represents about 37% of the total world population. Its services will include the transfer, storage and transfer of cryptocurrencies, including stablecoin trading and token deposits.
Mastercard is entering the cryptocurrency ecosystem
Notably, the latest approval comes just days after the payments network partnered with the decentralized oracle Chainlink. The latter now provides real-time blockchain-based data to support cryptocurrency purchases through Mastercard.
The payments giant also acquired London-based stablecoin payment infrastructure provider BVNK in a deal worth up to $1.8 billion. This represents the largest corporate acquisition in the history of stablecoins. It also positioned Mastercard as a leading link between traditional banking systems and connected networks across more than 130 countries.
regarding BitLicenseJohn Lambert, the company’s chief product officer, said:
“Clear regulatory frameworks play an important role in building trust as new forms of digital value move from experimentation to practical application.”
Visa — Mastercard’s biggest competitor and the world’s largest payment processing network — has done a similar integration with cryptocurrencies Moves to its push rods.
Last month, Visa expanded its global multi-chain stablecoin settlement pilot program to include five additional blockchains for its B2B services.
On cryptocurrency Twitter, one commenter defended Mastercard, saying the widespread adoption of cryptocurrencies was dependent on it Corporate promotion Instead of “not planting phrases and self-preservation.”
Another not-so-optimistic user claimed that payment companies are collecting intermediary fees instead of letting the reward go to the miners as Satoshi wanted.
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