MoonPay Inc., a prominent player in the cryptocurrency payment sector, is set to start issuing and managing stablecoins for its clients, responding to the increasing demand for dollar-pegged tokens in the wake of recent US legislation aimed at regulating the cryptocurrency industry.
Zach Kwartler, who recently joined MoonPay from Paxos Inc., will lead the stablecoin initiatives. Kwartler, who has a background in developing stablecoin and crypto infrastructure products, will utilize MoonPay’s existing money transmitter licenses to facilitate this service across all US states. His experience at Paxos, where he collaborated with major clients, positions him well to oversee this new venture.
With the introduction of its issuance services, MoonPay aims to reach enterprise clients not only in the United States but also in Asia and Latin America, supporting multiple blockchains. Kwartler noted that having the ability to issue proprietary stablecoins could significantly enhance the payments operations for MoonPay’s customers.
The decision to launch stablecoin services aligns with the increasing popularity of these digital assets, which are designed to maintain a consistent value with traditional assets like the US dollar. This trend gained momentum following the passage of regulatory legislation in July, which has spurred interest and investment in the sector.
Founded in 2019, MoonPay offers software solutions that streamline conversions between fiat currencies and cryptocurrencies. This is achieved through connections with digital financial providers, decentralized finance platforms, and cryptocurrency exchanges. As MoonPay continues to evolve, the company is reportedly in discussions for a new funding round that could place its valuation above the $3.4 billion mark established in 2021.
As demand for stablecoins intensifies, MoonPay’s new service may position the company to capture a significant share of this growing market, leveraging its technological capabilities and industry experience.
