Strike, the Bitcoin (BTC) payments firm founded by Jack Mallers, has received both a BitLicense and money transmitter license from the New York State Department of Financial Services, clearing the company to operate in one of the most tightly regulated cryptocurrency markets in the country.
The approval unlocks bill-pay features - including mortgage, utility, and credit card payments - funded from Bitcoin balances, though Strike converts those balances to dollars before transmitting payment.
No mortgage lender accepts Bitcoin directly.
New York's BitLicense, introduced in 2015, requires firms to meet ongoing capital reserve, cybersecurity examination, and audit requirements - conditions that have historically limited the number of cryptocurrency companies able to serve state residents.
What Happened
Under the approval, New York users can buy and sell Bitcoin via bank transfer or debit card, convert up to 100% of direct-deposited paychecks into Bitcoin at no conversion fee on amounts up to $20,000 per month, and set price-triggered orders that execute automatically at a target price.
Customer balances are held 1:1 and never lent out, according to the company. Strike accounts are not FDIC-insured.
Mallers said the company is "building the leading Bitcoin financial institution." Strike's legal entity, Zap Solutions Inc., is now formally licensed by NYDFS to engage in virtual currency business activity in the state.
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Why It Matters
The approval adds institutional weight to Mallers' broader push in Bitcoin-native finance. He co-founded Twenty One Capital - a Nasdaq-targeted Bitcoin investment vehicle modeled after Strategy - which holds more than 43,500 BTC, currently worth roughly $3 billion, making it the third-largest corporate Bitcoin holder.
Strike's New York launch extends that footprint to retail and business users in the country's largest financial market.
Strike also disclosed plans for Bitcoin-backed lending products - a product category with a troubled track record.
Celsius, BlockFi, and Voyager all offered Bitcoin-collateralized lending before going bankrupt in 2022.
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