Recent market developments indicate that the intersection between major payment companies and cryptocurrency is deepening further.

On May 27, MasterCard secured a BitLicense virtual currency business license in New York, USA, positioning itself as one of the few global giants with both regulatory approval and full-chain payment capabilities. Meanwhile, Visa has set its sights on the African market, announcing the full launch of a cryptocurrency credit card pilot program, with stablecoins set to become a core component of future payment ecosystems.

This raises the question: What opportunities remain in the crypto market, which is increasingly targeted by global payment giants? What is its potential? And what risks should be considered?

**Strategic Moves by Giants**

"Securing this license will enable MasterCard to steadily advance its long-term strategy and develop compliant cryptocurrency payment and settlement infrastructure," the company stated regarding its next steps after obtaining the license. As payment systems evolve, MasterCard remains committed to operating within well-regulated financial environments.

Since its introduction in 2015, New York's BitLicense has been issued sparingly. Known for its stringent capital requirements, anti-money laundering standards, and consumer protection mechanisms, it is often regarded as a "golden ticket" in the crypto asset space. Jorn Lambert, MasterCard's Chief Product Officer, emphasized that a clear and robust regulatory framework is crucial for building market trust as new crypto assets transition from pilot programs to practical applications. Securing this license aligns closely with MasterCard's long-term development strategy, allowing the company to integrate stablecoins, tokenized deposits, and other crypto-related payment and settlement systems into its global payment network while adhering to established operational standards.

In contrast, Visa has chosen to focus on emerging markets. According to media reports, Michael Berner, Head of Visa South and East Africa, recently stated that the growth of digital payments in Africa is unprecedented, far outpacing other regions globally. He predicted that the entire payment landscape could undergo fundamental changes within the next two to three years. Berner noted that Africa leads the world in digital payment growth momentum, with stablecoins likely becoming a key component of future payment ecosystems. Pilot programs for virtual currency settlements are also set to launch soon.

Visa has taken a proactive and clear stance on virtual currencies and stablecoins. Berner revealed that multiple African banks have shown strong interest in cryptocurrency credit cards, and Visa is already in discussions with several African banks, with pilot projects expected to commence shortly.

**Motivations Behind the Moves**

Why are these giants entering the crypto asset space now? What considerations underlie their strategic decisions?

Industry experts suggest that for Visa and MasterCard, entering the crypto industry is not merely a trend-following move. It is driven by three key factors: efficiency improvements, defensive positioning, and incremental growth opportunities.

Yu Jianing, Co-Chair of the Blockchain Committee of the China Communications Industry Association and Rotating Chairman of the Academic Committee of the Hong Kong Registered Digital Asset Analyst Association, explained that crypto asset services hold significant appeal for payment giants like MasterCard and Visa. On one hand, they offer fundamental improvements in clearing and settlement efficiency, directly impacting cost structures and capital turnover. On the other hand, they represent a defensive market positioning strategy. Stablecoins inherently have the potential to bypass traditional card networks, and if allowed to develop independently, they could undermine the decades-long advantages built by payment giants. Integrating potential disruptors into their own networks is a proactive defensive measure.

Additionally, these moves are aimed at capturing growth opportunities in emerging markets. Yu pointed out that regions like Africa, with underdeveloped banking systems, volatile local currencies, and high demand for cross-border remittances, present ideal conditions for stablecoins to fill gaps left by traditional financial infrastructure. This creates a window of opportunity to attract new users and increase transaction volumes.

"These platforms address the industry-wide issues of lengthy cross-border payment chains and high overall costs. They also aim to build independent business systems, reducing reliance on traditional clearing channels," said Wang Pengbo, Chief Analyst at Broadcom Consulting. However, he cautioned that the crypto industry's compatibility with the current global financial regulatory framework remains limited due to fundamental differences in operational logic. At this stage, these initiatives are more about long-term strategic exploration. For new systems to mature fully, they must overcome multiple hurdles, including regulatory and market integration challenges.

**Cryptocurrency Credit Cards**

Regarding cryptocurrency credit cards, Yu clarified that most so-called crypto asset credit cards are not traditional credit cards that allow users to borrow crypto assets. Instead, they are payment tools that bridge crypto assets with traditional card networks. There are two main types:

The first is the crypto asset debit card, where users deposit stablecoins or assets like Bitcoin or Ethereum into a linked account. When making a purchase, the issuer converts the assets into fiat currency in real time for settlement, essentially allowing users to spend their own funds. The second is a true crypto asset credit card, where the issuer provides a fiat credit line, and users can use crypto assets as collateral or a repayment source.

"Regardless of the type, from the merchant's perspective, these transactions appear as ordinary Visa or MasterCard payments and can be used in any scenario that supports these networks. The difference lies in the funding source and backend clearing processes," Yu explained.

He further noted that while crypto credit cards offer clear advantages, they also come with significant risks. Their primary benefit is providing a payment outlet for crypto assets, making them particularly suitable for emerging markets with volatile local currencies and low banking penetration. However, price volatility remains a concern, which is why stablecoins are the primary vehicle for such products. Additionally, compliance and tax risks exist, as many regions treat crypto spending as a taxable activity, leading to high compliance costs. There is also reliance on the issuer's solvency, as demonstrated by the collapse of platforms like FTX, where users' assets were directly at risk when issuers failed. Furthermore, regulatory uncertainty persists, especially for complex processes like credit issuance and asset collateralization, where frameworks are still evolving.

Overall, these products meet clear demand in cross-border consumption, emerging markets, and among high-net-worth individuals. However, their adoption in the mass market will depend on the widespread acceptance of stablecoins, regulatory maturity, and the risk management capabilities of issuers.

"While these products can fill gaps in certain regions' settlement systems, the high volatility of virtual asset prices, combined with varying regulatory policies across jurisdictions, creates potential risks for user fund security and institutional operations. The development of this category must proceed cautiously," Wang Pengbo emphasized.

**Risk Considerations**

From an industry perspective, the cryptocurrency and stablecoin sectors have attracted numerous cross-border payment players, with strategic focuses continuously evolving. For institutions today, core competitive advantages lie in technology, licensing, ecosystem development, and scenario coverage.

However, navigating regulatory differences across countries and regions presents significant risks.

Wang noted, "For institutions aiming to build comprehensive proprietary payment systems, cross-regional compliance management will remain a long-term challenge. Institutions must analyze regulatory details by region, adjust their business models and system architectures according to local rules, and continuously monitor policy changes."

"Regulatory approaches to stablecoins vary significantly across major jurisdictions. A common pitfall for institutions is applying a single market's compliance framework to global operations," Yu added. He explained that the U.S. GENIUS Act adopts a dual-layered federal and state regulatory approach, setting clear standards for reserve assets, redemption, anti-money laundering, and capital adequacy while prohibiting the re-pledging of reserve assets and interest payments to holders. The EU's MiCA framework emphasizes licensing for issuers and full coverage of reserve assets. Mainland China maintains a prohibitive policy, disallowing related business operations domestically. Hong Kong has enacted specific legislation to regulate stablecoins. These represent fundamentally different regulatory directions.

For institutions involved in this space, Yu advised focusing on mitigating risks such as jurisdictional mismatches, licensing issues, reserve and redemption risks, and anti-money laundering and sanctions compliance. Building a cross-border compliance system requires institutions to adopt localized compliance strategies, assess boundaries for each market individually, and avoid prohibited jurisdictions entirely.