The law will grant regulatory relief for innovators in these sectors who desire to bring new products to market within the state.

Under the program, which will take effect later this year, companies will be able to test their products for up to two years and serve as many as 10,000 customers before needing to apply for formal licensure.

"With the signing of H.B 2434, Arizona will become the ultimate sandbox for the development of Fintech," Ducey wrote on Twitter once it became official.

"FinTech is going to fundamentally transform banking, finance & technology. We're going to be the first in the state to embrace it," he said at an event hosted by the Arizona Commerce Authority, a business group.

As the pace of technological change in financial services continues to forge ahead at a sizzling rates that legacy regulatory systems are struggling to keep up with, jurisdictions around the world have moved to establish sandboxes that allow for new products to be deployed on a trial basis in a manner that loosens certain licensing restrictions while still affording consumer protections.