Short answer
A money transmitter license lets a business move money or sell payment instruments on behalf of others, such as transfers, money orders, or holding customer funds. Most states require it of money services businesses, and applications usually involve a surety bond, minimum net worth, and background checks. Companies handling digital assets often fall under the same rules.
Money transmission covers receiving money to send or deliver to someone else, issuing or selling money orders and prepaid access, and similar activity. States license it under money services business rules, and the requirements are heavier than a typical license: a surety bond, minimum net worth, detailed disclosures, and background checks on control persons.
Many businesses that handle cryptocurrency or stablecoins are treated as money transmitters by their state, so the question often comes up for fintech and digital-asset companies. Because the requirement is per state, a national footprint means many licenses.
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