Crypto payments firm MoonPay has recently achieved a significant milestone by obtaining a New York Trust Charter, granting it the regulatory approval to safeguard customers’ digital assets. This important development was announced in a press release on Tuesday. With this charter, MoonPay will not only be able to hold digital assets on behalf of its clients but will also be allowed to facilitate over-the-counter trades. These trades differ from traditional transactions, as they occur directly between two parties rather than through a centralized exchange.
Ivan Soto-Wright, co-founder and CEO of MoonPay, emphasized that the acquisition of the New York Trust Charter reinforces the company’s dedication to top-tier compliance and security standards. He expressed that this advancement will enhance MoonPay’s relationships with global financial institutions and broaden its range of regulated service offerings, further bridging the gap between traditional and digital finance.
Thom Hook, the global chief compliance officer at MoonPay, revealed that the firm is in the process of developing its first products enabled by the newly acquired charter. He mentioned that the MoonPay Trust Company lays the groundwork for offering custody and over-the-counter trading services. While these products aren’t ready for launch yet, the development process is underway, ensuring they align with the stringent security, compliance, and operational standards set forth by the New York Department of Financial Services (NYDFS).
Furthermore, Hook indicated that MoonPay’s services could also expand to other states, contingent on fulfilling the necessary regulatory requirements in each jurisdiction. This development places MoonPay among a select group of entities that have received a New York Trust Charter, including well-known firms such as Coinbase, PayPal, Ripple, and NYDIG.
Paxos, which was previously known as itBit, was the first crypto-native company to obtain a New York Trust Charter over a decade ago. The NYDFS oversees these companies under its regulatory framework, which includes the BitLicense regime. Similarly, other crypto-related companies—such as Coinbase, stablecoin issuer Circle, and Crypto.com—are pursuing national trust bank charters to enhance their operational capabilities. Anchorage Digital also made headlines in 2021 as the first federally chartered digital asset bank.
In addition to offering custodial services, MoonPay’s charter could pave the way for the issuance of stablecoins, contingent on NYDFS approval. This potential is bolstered by the recent Genius Act, a legislation which has been described as a catalyst for fostering increased competition among financial institutions.
Earlier this month, MoonPay announced its foray into enterprise stablecoin services, integrating with the platform M0 to manage fully reserved digital dollars across multiple blockchains. The company has a strong track record, allowing customers to purchase cryptocurrencies via several methods, including Apple Pay and debit cards. Notably, in May, Mastercard announced a partnership with MoonPay to utilize stablecoin-powered cards, enabling automatic conversion of crypto into fiat for seamless payments.
This regulatory approval and subsequent developments signify a noteworthy step for MoonPay as it aims to solidify its position within the evolving landscape of digital finance.
