Crypto payments firm MoonPay has announced a significant milestone, securing a New York Trust Charter that will enhance its ability to protect customers’ digital assets. The approval positions MoonPay to facilitate over-the-counter trades, allowing transactions to occur directly between parties without the necessity of a centralized exchange.
Ivan Soto-Wright, co-founder and CEO of MoonPay, emphasized the importance of this achievement in a recent statement, expressing the company’s commitment to high standards of compliance and security akin to those found on Wall Street. The newly acquired charter will enable MoonPay to strengthen its partnerships with global financial institutions and broaden its range of regulated services, facilitating the convergence of traditional and digital finance.
The New York Trust Charter, regulated by the New York Department of Financial Services (NYDFS), has been held by only a select number of firms. Paxos, originally known as itBit, was the first cryptocurrency-focused entity to secure such a charter over a decade ago. Other notable companies authorized under this framework include the crypto exchange Coinbase, the payments giant PayPal, XRP-linked Ripple, and NYDIG, a firm focused on Bitcoin financial services.
Currently, several firms, including Coinbase, stablecoin issuer Circle, and the exchange Crypto.com, are pursuing national trust bank charters. Notably, Anchorage Digital became the first federally chartered digital asset bank in 2021.
While servicing stablecoins under the NYDFS will still require a separate approval process, MoonPay has indicated that the new charter will pave the way for its ambitions in this area, particularly under the recently enacted Genius Act. This legislation, passed earlier this summer, is anticipated to spur increased competition within the financial sector, possibly impacting larger traditional institutions like Citigroup.
Earlier this month, MoonPay took a step forward by launching its enterprise stablecoin business, integrating with the infrastructure platform M0 to enable the management of fully reserved digital dollars across multiple blockchain networks. Historically, the company has offered solutions for customers to purchase cryptocurrencies using a variety of payment methods, including Apple Pay and debit cards. Notably, in May, Mastercard aligned with MoonPay to introduce stablecoin-enabled cards that facilitate automatic conversion of crypto to fiat for easier payments.
