The New York campus of Glasgow Caledonian University has been given permission to award degrees.
The degree-granting charter from New York State Education Department (NYSED) makes it the first foreign institution in the state with this status.
The campus opened in September 2013 but has not been able to award degrees.
The Glasgow Caledonian New York College has been given a provisional charter, which can become "absolute" after five years.
The Scottish university said this was standard practice for new higher education establishments.
Principal and Vice-Chancellor Prof Pamela Gillies said: "I am absolutely thrilled that we now have the opportunity to build upon our new research and business relationships in New York to deliver our unique programmes, which focus on fair fashion, fair finance and sustainability.
"Our New York team, led by Vice-President Cara Smyth, should be very proud of the steadfast way it has forged a new path for our university."
It has previously been reported that Glasgow Caledonian spent £5.6m on the New York project.
The campus was formally opened in April 2014 by the then first minister, Alex Salmond, and has attracted a number of high profile speakers and seminars.
When first minister Nicola Sturgeon visited in June 2015, she described the campus as an "absolutely fantastic development" and praised the "foresight" of university leaders.
The university said more than 30 "global brands" have been working with its Fair Fashion Centre "to research fashion as an instrument of sustainability and ethical business".
Cara Smyth, welcoming the NYSED decision, said: "I am delighted that we will be able to put all our plans into action and offer Masters degrees in finance, fashion and social business.
"Our Fair Fashion Center will support the degrees as we continue to identify effective approaches to profitable sustainability, proving the business case by turning global challenges into industry opportunities.
"I would like to offer my heartfelt thanks to our GCU colleagues, the team here, and our many supporters in business, not-for-profits and the city of New York."
Hazel Brooke, who chairs Glasgow Caledonian's governing body, added: "We welcome the outcome. The Court has consistently focused on, tested and monitored this bold and imaginative project throughout the lengthy and rigorous process.
"Congratulations are due to the staff and advisors who have worked so hard to achieve this result."
Glasgow Caledonian has invested in a number of international projects.
It already runs a college of engineering in Oman and a college of nursing in Bangladesh in partnership with others.
It has a new campus in London as well as New York and has been invited to teach degree courses in Mauritius.