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SEC’s Hester Peirce Defends Crypto Privacy Tools Amid Surveillance Concerns

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SEC’s Hester Peirce Defends Crypto Privacy Tools Amid Surveillance Concerns

US Securities and Exchange Commission (SEC) Commissioner Hester Peirce said financial privacy is becoming increasingly undervalued in US regulation, warning against treating privacy-preserving technologies with suspicion.

Speaking Wednesday at Georgetown Law, Peirce described privacy-enhancing technologies, including cryptographic tools, as legitimate components of modern financial infrastructure rather than tools primarily associated with criminal activity.

Peirce said that protecting financial privacy does not conflict with national security objectives.

“Empowering government to be able to identify, pursue, and punish the bad guys is important to the security of the nation and its people, but so too is empowering people to protect information about their lives, including their financial lives,” she said, according to a transcript published on the SEC’s website.

She added that privacy technologies can help individuals protect themselves from hackers, scammers and other malicious actors, and should not be viewed as “an opportunity for the government to watch more of what its citizens do.”

Peirce also encouraged developers building privacy-enhancing technologies to engage with the SEC’s Crypto Task Force, particularly on tools that could support Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance requirements.

Source: zooko

Related: Tor Project to lead Web3 crowdfunding to support internet freedom

Privacy returns to crypto spotlight

Privacy and privacy-preserving technologies have long been one of cryptocurrency’s core use cases, with projects like Monero and Zcash built around shielding transaction data and user identities.

The debate returned to the spotlight over the past year as regulators and developers clashed over the role of privacy tools in crypto. While advocates argue these technologies protect users from surveillance, hackers and data exploitation, critics have raised concerns about their potential use in illicit finance.

The debate has also been taken up in the European Union, where regulators and blockchain industry participants are weighing new AML rules scheduled to take effect in 2027. Under the framework, credit institutions and crypto asset service providers would be prohibited from maintaining anonymous accounts or supporting privacy-preserving cryptocurrencies.

Maintaining access to privacy-focused digital assets has been a “constant battle” between the crypto industry and regulators, according to Anja Blaj, a legal consultant at the European Crypto Initiative.

Growing interest in privacy-focused cryptocurrencies has helped drive Zcash prices sharply higher over the past year. Source: CoinMarketCap

At the same time, companies continue developing privacy-focused blockchain applications. Aptos unveiled a privacy-focused coin designed to help businesses transact onchain without exposing treasury movements, payment flows or trading strategies to competitors.

Polygon has also rolled out private stablecoin payments for institutions, positioning the feature as a way to support broader adoption of onchain transactions.

Related: Bitcoin developer launches privacy-focused Nostr VPN using public keys

Base Launches Azul Upgrade, Takes Step Toward Stage 2 Decentralization

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Base Launches Azul Upgrade, Takes Step Toward Stage 2 Decentralization

The Coinbase-incubated layer-2 network activated multiproofs on mainnet, combining TEE and ZK proof systems to move closer to full decentralization while cutting empty blocks by 99%.

Base, the Layer 2 blockchain incubated by Coinbase, activated its Azul network upgrade on mainnet this month, marking the chain’s first independent protocol upgrade and a significant step toward Stage 2 decentralization.

The upgrade launched on Base Sepolia testnet on April 21 and was targeted for mainnet on May 13, according to a blog post published by the Base engineering team that day. Multiproofs went live on mainnet by May 21, a follow-up post confirmed.

Azul’s most consequential change is the activation of multiproofs, a system that combines trusted execution environment (TEE) provers and zero-knowledge (ZK) provers into a single proof architecture.

Either proof type can independently finalize a block proposal, but when both agree, withdrawals from Base to Ethereum can settle in as little as one day. ZK proofs override TEE proofs if the two contradict, and conflicting proofs trigger an automatic soundness alert that disables the associated prover. The design is modeled on a finalization roadmap proposed by Ethereum co-founder Vitalik Buterin.

Base currently holds $4.38 billion in total value locked, supports $1.37 billion in daily DEX volume, and hosts $4.66 billion in stablecoin market cap on-chain, according to DefiLlama data.

Stage 2

Buterin’s decentralization framework for Layer 2 networks defines Stage 2 as the point at which a chain can detect and handle proof system bugs onchain without relying on a privileged security council to intervene. Base reached Stage 1 in April 2025, when it established a decentralized Security Council to approve upgrades. Fault proofs, which allow any user to challenge an incorrect state claim, were activated in October 2024.

Multiproofs satisfy a core technical requirement for Stage 2 by enabling onchain detection of proof system bugs. The ZK component uses SP1, a prover developed by Succinct Labs, which Base cited for its performance and audit history. The system is designed so that a compromise of fast withdrawals would require an attacker to defeat multiple independent proof systems simultaneously.

Before the upgrade, Base ran an audit competition on Immunefi from April 21 to May 4 with a maximum reward pool of $250,000 for critical vulnerabilities reported against testnet code.

Client Consolidation and Performance

Azul consolidates Base onto a single client stack. The upgrade drops support for all execution and consensus clients except base-reth-node, an execution client based on Reth and one of Ethereum’s highest-performing clients, and base-consensus, a new consensus client built on the Kona framework. Base said the consolidation is aimed at clearing a path to 1 gigagas per second throughput.

Over the two months preceding Azul’s launch, Base said it reduced empty blocks by approximately 99%, from roughly 200 per day to about two, and sustained multiple bursts of 5,000 transactions per second.

Node operators are required to migrate to the new client stack before network upgrade activation. Step-by-step instructions are available in Base’s node operator upgrade guide.

Azul also aligns Base with Ethereum’s latest execution-layer specification, known as Osaka. The changes include EIP-7825, which introduces a per-transaction gas cap of roughly 17 million gas to support future validator performance.

What Comes Next

Base outlined two additional upgrades planned for the coming months. A performance-focused upgrade targeting the end of June is expected to include an enshrined token standard, Flashblock access lists, Glamsterdam EIPs, a single combined client binary, and reduced withdrawal times. A second upgrade, targeting the end of August, would introduce native account abstraction.

Base also plans to launch Base Vibenet in mid-May, a public devnet for developers to experiment with upcoming features ahead of mainnet. Base described Vibenet as a permanent testing environment not tied to any specific hard fork.

A blockchain lottery plans to use crypto gambling fees to fund Ethereum development

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A blockchain lottery plans to use crypto gambling fees to fund Ethereum development

Ethereum core developers may soon get a new source of funding: a blockchain lottery.

Decentralized lottery protocol Megapot said Thursday it is teaming up with Protocol Guild, an independent funding collective for Ethereum protocol contributors, to introduce what they describe as the crypto industry’s first programmable charity lottery.

Under the arrangement, users can buy tickets for a daily lottery through a dedicated Protocol Guild portal for a chance to win prizes from a pool exceeding $1.1 million. Megapot said 100% of referral fees generated from ticket sales will be automatically distributed by smart contracts to Ethereum developers supported by Protocol Guild.

The effort comes as concerns around sustainable funding for Ethereum’s core infrastructure have intensified. While the blockchain underpins billions of dollars in decentralized finance and crypto trading activity, many developers maintaining the network earn significantly less than peers in other parts of the industry, according to Megapot.

Protocol Guild said it has distributed roughly $38 million to Ethereum contributors since 2022 through donations and token pledge initiatives, but estimates that maintaining and scaling Ethereum could require between $30 million and $60 million annually.

“Every token, NFT, or perps trade depends on the tireless work of Ethereum core developers,” Megapot CEO Patrick Lung said in a statement shared with CoinDesk. “Now, players don’t have to choose between speculation and contribution. They can do both.”

The model mirrors traditional charity lotteries such as the U.K. National Lottery, while moving the mechanism onchain. Megapot said its programmable referral system removes administrative overhead and ensures proceeds are distributed transparently.

“Getting consistent funding to Ethereum protocol stewards is a critical and growing challenge,” said Trent Van Epps, the main organizer at Protocol Guild and a former Ethereum Foundation member. “We’re excited to see how this novel Megapot integration will raise the bar on how apps can support the infra they depend on.”

Read more: The Next Stage for Public Good Funding in Crypto

Bitwise bets Hyperliquid could power future finance as HYPE ETFs gain traction

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Bitwise bets Hyperliquid could power future finance as HYPE ETFs gain traction

Latest developments: Bitwise is leaning into Hyperliquid as one of crypto’s breakout platforms this cycle.

  • Bitwise Head of Research Ryan Rasmussen said the firm is seeing strong investor interest in its HYPE ETF products following the recent launch of BHYP.
  • Rasmussen said Bitwise differentiates itself by staking HYPE in-house to maximize yield for ETF investors.
  • The firm also allocates 10% of management fees toward buying HYPE tokens for its own balance sheet “to align with the Hyperliquid community,” Rasmussen said.
  • Bitwise publicly shares wallet addresses tied to its HYPE ETF reserves so investors can verify holdings on-chain.

What this means: Hyperliquid is increasingly being framed as infrastructure.

  • Rasmussen argued Hyperliquid could become “one of the systems that most of traditional finance runs on in the future.”
  • He pointed to growth in perpetual futures, prediction markets and spot trading as evidence the ecosystem is expanding beyond its initial niche.
  • Rasmussen also cited tokenized equities, stablecoins and 24/7 trading as trends that could benefit Hyperliquid over the long term.
  • He referenced the recent Coinbase-Hyperliquid partnership tied to USDC liquidity as another sign of institutional momentum.

The bull case: Bitwise believes Hyperliquid benefits from crypto’s changing regulatory climate.

  • Rasmussen said projects like Hyperliquid can now launch with stronger token incentives because the industry faces less fear of regulatory crackdowns than in prior cycles.
  • He highlighted Hyperliquid’s tokenomics, noting that “99% of fees generated on this platform are used to buy and burn HYPE tokens.”
  • Rasmussen compared the mechanism to traditional stock buybacks, arguing it creates an easier narrative for investors to understand.
  • Bitwise said it sees long-term upside tied to adoption of perpetuals, tokenization and blockchain-based financial infrastructure.

The risks: Regulatory scrutiny and macro uncertainty remain major concerns.

  • Rasmussen acknowledged that U.S. oversight of perpetual futures markets could create pressure for Hyperliquid and similar platforms.
  • He also cited inflation concerns, Federal Reserve policy and geopolitical tensions as broader risks affecting crypto markets.
  • Traditional exchanges are reportedly pushing regulators to examine Hyperliquid more closely as decentralized competitors gain traction.
  • Rasmussen characterized that resistance as typical of incumbents facing disruptive technologies.

Broader view: Financial advisors are moving beyond basic crypto skepticism.

  • Rasmussen said wealth managers are increasingly asking about portfolio allocation, tokenization and stablecoins instead of questioning whether crypto will “go to zero.”
  • Rasmussen said institutional adoption remains early despite growing interest from firms managing trillions of dollars.
  • He described the quality of advisor conversations today as “so much better” than even two years ago.

Tether’s U.S.-focused stablecoin grows 500% in a month, but still lags Circle, Ripple, Paypal

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Tether’s U.S.-focused stablecoin grows 500% in a month, but still lags Circle, Ripple, Paypal

Stablecoin giant Tether’s U.S.-focused digital dollar token USAT (USAT) expanded more than sixfold month-over-month in April, it still lags far behind its rivals.

According to the latest reserve report signed by Deloitte and published Thursday, the token’s circulating supply hit $140.8 million as of April 30, up from $22 million in March and posting a 540% growth in a month. Reserve assets backing the token rose to $141.2 million from $22.2 million in March, the report showed.

Bo Hines, CEO of Tether USAT, said the growth reflects “increased use across institutional treasury operations, settlement flows, and regulated dollar liquidity management.”

“The broader policy environment is moving in the right direction, and USAT is already operating in the kind of structure that institutions are asking for,” he added.

The stablecoin market has grown past $300 billion in value as the sector is becoming increasingly embedded into global finance and payment rails. The GENIUS Act, which created a federal framework for dollar-backed stablecoins, further boosted that trend, opening the door for banks, fintech firms and crypto companies to offer regulated digital dollars in the U.S.

USAT debuted in January and is issued by Anchorage Digital, the federally chartered crypto bank that Tether partnered with to expand into the U.S. market. Tether’s flagship stablecoin, USDT, remains the largest U.S. dollar-pegged token globally with a market capitalization near $189 billion. USDT is regulated in El Salvador and is widely used in emerging markets for payments, savings and trading.

Despite last month’s spur of growth, USAT still has a lot to catch its main rivals that eye U.S. customers.

Circle’s USDC token has a market capitalization of roughly $76 billion, while PYUSD$1.0003, issued by Paxos, stands at about $5.5 billion. RLUSD$0.9990, which debuted in 2024 December, has grown to roughly $1.7 billion.

Crypto trading firm FalconX confidentially files with SEC for IPO, hires bankers

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Crypto trading firm FalconX confidentially files with SEC for IPO, hires bankers

Crypto trading firm FalconX has confidentially filed a draft S-1 registration statement with the Securities and Exchange Commission (SEC), the initial step toward a potential public listing, according to a person with knowledge of the matter.

FalconX has hired Wall Street heavyweight Cantor and other bankers to advise on its initial public offering (IPO), the person said, who spoke on condition of anonymity as the matter is private.

The California-based company’s IPO is not expected to happen until the end of the year, given market conditions, the person added. CoinDesk previously reported that Cantor was among the firms pitching FalconX for its potential listing.

Both FalconX and Cantor declined to comment.

FalconX is a brokerage and trading firm that primarily serves institutional clients, including hedge funds, asset managers, and market makers. Founded in 2018, it operates as a digital asset prime broker, providing services such as trade execution, liquidity access, credit, and clearing. In June 2022, the company raised $150 million in a Series D funding round that valued the firm at $8 billion.

Crypto firms entered 2026 expecting a strong year for IPOs after successful listings by companies such as Circle (CRCL) and Bullish (BLSH), CoinDesk’s parent company, helped rekindle investor appetite for digital-asset businesses in 2025.

Since then, however, deteriorating market conditions, weaker trading volumes and lackluster post-listing performances from newly public firms such as BitGo (BTGO) have cooled enthusiasm for additional crypto IPOs.

Several major crypto companies, including Payward, Kraken’s parent company; Ethereum software developer Consensys; hardware wallet maker Ledger, and asset manager Grayscale, have since postponed their IPO plans while waiting for market conditions to improve.

Some firms are still pushing ahead with their plans to go public. Blockchain.com said last week that it had confidentially filed for a U.S. IPO with the SEC.

Meanwhile, Securitize has agreed to merge with Cantor Equity Partners II, a Nasdaq-listed special purpose acquisition company, in a deal that would make it one of the few publicly traded firms primarily focused on tokenized securities and real-world assets.

Read more: Crypto IPOs could create massive $1 trillion market amid tokenization wave, Jefferies says

Kalshi Sues Minnesota, CFTC Files Against Rhode Island as Prediction Markets Legal Battles Continue

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Kalshi Sues Minnesota, CFTC Files Against Rhode Island as Prediction Markets Legal Battles Continue

The US Commodity Futures Trading Commission (CFTC) and companies behind prediction market platforms are continuing legal fights against state-level authorities, with the latest battlegrounds centered in Rhode Island and Minnesota.

Last week, Minnesota Governor Tim Walz signed a bill into law amending statutes to prohibit advertising, creating, operating or otherwise facilitating prediction market platforms. The move prompted CFTC Chair Michael Selig to file in federal court less than 24 hours later, alleging Minnesota and its officials had enacted the “first outright ban” on prediction markets.

Source: PACER

That set up a move by Kalshi on Wednesday challenging the Minnesota law on constitutional grounds. The company echoed arguments made by Selig, claiming that the CFTC had “exclusive authority” over prediction markets under the Commodity Exchange Act and under the Supremacy Clause of the US Constitution, the federal law took precedence over state laws. 

Central to Kalshi’s and Selig’s claims is that event contracts on prediction market platforms are “swaps” traded on federally designated contract markets and subject to the CFTC’s jurisdiction rather than state authorities. Although some courts have rejected this argument, others have sided with Kalshi and the CFTC, setting up a potential case for the US Supreme Court.

Related: After Kalshi appeal, prediction markets fight could head to US Supreme Court

On Thursday, the CFTC announced a joint filing with Kalshi against Rhode Island officials. The motion to intervene reiterated the agency’s previous claims on its authority over prediction markets, stemming from Rhode Island Attorney General Peter Neronha suing Kalshi and Polymarket and asking for a declaration that the platforms’ sports-related “event contracts” amounted to bets.

Event contract on when a prediction markets case could go to the US Supreme Court. Source: Polymarket

Donald Trump weighs in, despite family ties to prediction markets

On Wednesday, US President Donald Trump took to social media, claiming that it was “critically important” that the CFTC had sole authority over prediction markets. His son, Donald Trump Jr., is an adviser to Kalshi and Polymarket and invested in the latter through his venture capital firm, 1789 Capital.

“We want to remain at the top,” said Trump, referring to prediction markets and insulting state officials behind some of the lawsuits against Kalshi and Polymarket.

The platforms have come under scrutiny in the US Congress amid concerns over elected officials potentially being engaged in insider trading. Last week, the chair of the House of Representatives’ Oversight and Government Reform Committee called on the CEOs of Kalshi and Polymarket to answer questions related to the companies’ response to insider trading.

Magazine: Big Questions: Do we really only need 2–5 cryptocurrencies?

Trezor Launches USDC, USDT Yield in Trezor Suite Through Morpho

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Trezor Launches USDC, USDT Yield in Trezor Suite Through Morpho

Trezor has integrated native stablecoin yield functionality into Trezor Suite, the hardware wallet provider’s desktop and mobile application, in a move that could make earning yield on stablecoins more accessible to users who have traditionally avoided decentralized finance due to its complexity and security risks.

Announced on Thursday, the feature comes through an integration with Morpho, a decentralized lending protocol built on Ethereum. The integration allows users to deposit USDt (USDT) and USDC (USDC) into pre-selected Morpho vaults directly through Trezor Suite without connecting external wallets or using separate DeFi applications.

According to Trezor, deposits, withdrawals and reward claims are signed directly on users’ hardware wallets through the company’s clear-signing interface, which displays transaction details in human-readable form on the device screen.

Source: Trezor

At launch, Trezor selected two Morpho vaults curated by Steakhouse Financial — USDC Prime and USDT Prime. The company said yield is generated from borrowing demand on Morpho rather than token incentive programs.

Trezor is one of the largest crypto hardware wallet providers and is widely considered the second-largest player in the market behind Ledger.

Wallet providers have recently been making a broad push to incorporate decentralized finance functionality directly into custody products while reducing the complexity traditionally associated with DeFi protocols. 

Ledger already offers native stablecoin yield through Ledger Live using Kiln-powered integrations with protocols including Morpho, Aave and Compound.

Related: ERC-7943 author says institutions can’t play DeFi’s ‘pirate game’

Stablecoin yield draws growing interest — and scrutiny

Stablecoin yield strategies have become one of the fastest-growing use cases in DeFi, allowing users to earn returns on dollar-pegged assets by lending them through onchain protocols.

According to CoinMarketCap data, USDC yields can vary widely across platforms and market conditions, with some protocols offering double-digit annual returns. Supporters say stablecoin yield products offer crypto holders a way to generate passive income.

However, the strategies also carry risks, including smart contract vulnerabilities, liquidity issues and exposure to centralized stablecoin issuers or counterparties.

Ethereum co-founder Vitalik Buterin recently drew a distinction between decentralized finance and many of the yield-focused stablecoin products currently on the market. In a recent post, Buterin said that many “USDC yield” strategies remain heavily dependent on centralized issuers while failing to adequately address counterparty risk.

Source: Vitalik Buterin

Buterin proposed two alternative models that he said align more closely with DeFi’s decentralized ethos: Ether-backed algorithmic stablecoins and overcollateralized real-world asset-backed stablecoins.

Related: Crypto Biz: Institutions tighten their grip on Bitcoin, AI and prediction markets

Calamos bets protected Bitcoin ETFs can outlast crypto market swings

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Calamos bets protected Bitcoin ETFs can outlast crypto market swings

Latest developments: Calamos says its protected Bitcoin ETFs are attracting inflows even as spot Bitcoin ETFs see redemptions.

  • Matt Kaufman, head of ETFs at Calamos, said the firm saw roughly $10 million to $15 million in inflows over the past several weeks.
  • Kaufman said advisors are increasingly looking for Bitcoin exposure that reduces volatility and downside risk.
  • The firm offers three versions of its protected Bitcoin ETFs, including products with full downside protection and others with 10% or 20% downside risk.
  • “You can get upside of Bitcoin with no downside risk,” Kaufman said.
  • Kaufman joined CoinDesk’s Jennifer Sanasie on Public Keys.

How it works: Calamos structures the products using Treasuries and options tied to Bitcoin-linked indexes.

  • Kaufman said the firm allocates roughly 90% of assets into Treasuries to build downside protection.
  • The remaining budget is used to buy Bitcoin-linked call spreads through FLEX options.
  • Calamos created its own Bitcoin-linked index and listed FLEX options tied to that index after the launch of spot Bitcoin ETF options.
  • The products are offered in quarterly structures as well as laddered versions designed for model portfolios.

What advisors are asking: Wealth managers are becoming more sophisticated in how they evaluate crypto exposure.

  • Kaufman said advisors previously focused on whether Bitcoin belonged in portfolios at all.
  • Now, advisors are asking how to improve risk-adjusted returns and portfolio construction using crypto exposure.
  • Calamos positions its products as alternatives to traditional portfolio allocations, including broad equities, bonds and cash.
  • Kaufman said some investors are moving from cash-like products into fully protected Bitcoin ETFs tied to Bitcoin performance but without downside exposure.

Reading between the lines: The crypto ETF market is evolving beyond simple spot exposure.

  • Kaufman said the industry is increasingly dividing crypto ETF strategies into three categories: protection, income and growth.
  • Calamos previously launched auto-callable income ETFs and is exploring additional crypto-related strategies.
  • Other ETF issuers have focused on generating yield from Bitcoin volatility through options-based products.
  • “You don’t just have to sit in the spot vehicle anymore and ride out those waves,” Kaufman said.

What comes next: Calamos expects Bitcoin volatility to remain a defining feature of the asset.

  • Kaufman said he expects Bitcoin to revisit previous highs despite recent market turbulence.
  • He argued Bitcoin’s volatility profile creates opportunities for structured products and options-based strategies.
  • “I think we’re going higher,” Kaufman said.

Mastercard Wins NY BitLicense, Deepening Push Into Stablecoin Settlement

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Mastercard Wins NY BitLicense, Deepening Push Into Stablecoin Settlement

The payments giant, which processed nearly $11 trillion in volume last year, secured one of the US’s most demanding state crypto licenses as it moves to settle transactions in digital assets.

Mastercard, the world’s second-largest card payment network, has secured a BitLicense from the New York State Department of Financial Services, a key regulatory clearance as the company moves to support stablecoin and tokenized deposit settlement across its global infrastructure.

The license was granted to Mastercard Transaction Services (U.S.) LLC, the company announced Wednesday. It puts Mastercard — which processed close to $11 trillion in payment volume in 2025, according to Morningstar — into a select group of NYDFS-regulated digital asset operators that includes Circle, Coinbase, and Paxos.

Mastercard’s shares were trading around $494, down roughly 18% from their 52-week high of $601.77 hit in August 2025, according to Google Finance data.

The license comes as the total stablecoin market has reached $322.6 billion, according to DeFiLlama, and annual stablecoin transfer volumes topped $27.6 trillion in 2025 — exceeding the combined transfer volumes of both Visa and Mastercard’s traditional networks.

What the BitLicense Means

New York’s BitLicense, introduced in 2015, is widely considered the most rigorous virtual currency license in the US. It requires applicants to meet comprehensive standards on consumer protection, anti-money laundering compliance, cybersecurity, and operational resilience. The application process can take up to two years for complex institutional operations.

Mastercard obtaining the license directly, rather than relying on third-party licensees, means it can operate virtual currency business activities with New York residents and entities in its own name. That structural shift matters for a company whose business model depends on controlling settlement infrastructure.

“Clear regulatory frameworks play an important role in building trust and confidence as new forms of digital value move from experimentation toward practical application,” Jorn Lambert, Mastercard’s chief product officer, said in the company’s press release. “This approval underscores our focus on aligning innovation with regulatory expectations of high levels of security, compliance and risk management.”

Stablecoin Settlement Push

The BitLicense announcement is the latest step in Mastercard’s move into digital asset settlement. In March, the company partnered with SoFi Technologies to enable SoFiUSD, the first stablecoin issued by a US nationally chartered and insured bank on a public blockchain, as a settlement option across its global payments network. The company also launched a Crypto Partner Program with more than 85 companies targeting stablecoin-powered cross-border transfers and B2B payments.

Stablecoin issuance doubled in 2025 from the prior year, and roughly $30 billion is transacted in stablecoins per day, according to Mastercard’s own figures cited in the SoFi announcement.

Mastercard’s move into direct digital asset licensing also comes as federal stablecoin regulation takes shape. The GENIUS Act, the first comprehensive US stablecoin law, was signed by President Trump in July 2025. Federal regulators face a deadline of July 18, 2026, to finalize implementing rules, according to Gibson Dunn. Holding state-level standing before federal rules take effect could give Mastercard an advantage as that licensing framework is built out.

Racing Visa

Mastercard is not moving alone. Rival Visa reached a stablecoin settlement run rate of $3.5 billion by November 2025 and has expanded those services to more than 40 countries. Galaxy Digital also received a BitLicense and Money Transmission License from NYDFS earlier this month, as institutions accelerate their push into regulated digital asset infrastructure in New York.

Still Early

Mastercard has not disclosed which specific stablecoins it plans to support under the license, or how quickly it intends to migrate settlement volume to digital rails.

The company’s stablecoin settlement pilots remain limited to partnerships such as the SoFi arrangement, and full network-wide adoption would require coordination with thousands of issuing and acquiring banks worldwide.

The GENIUS Act’s implementing regulations will also shape what federally regulated stablecoin activity looks like, potentially affecting how state licenses like the BitLicense interact with the broader framework.

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