MoonPay Gains New York Trust Charter for Digital Asset Custody

TLDR

• MoonPay has received approval for a New York Trust Charter, which will allow it to safeguard customers’ digital assets.
• The company can now facilitate over-the-counter trading, offering direct transactions between two parties.
• MoonPay’s new charter strengthens its compliance and security standards to meet Wall Street-level requirements.
• The company plans to expand its services to other states after meeting regulatory requirements in each region.
• MoonPay is also exploring issuing stablecoins under the new regulatory framework.

MoonPay has received approval to safeguard customers’ digital assets and has secured a New York Trust Charter. This achievement will allow the crypto payments firm to hold assets on behalf of clients. It also enables the company to facilitate over-the-counter (OTC) trades directly between two parties, without using a centralized exchange.

MoonPay’s Expansion in Regulated Services

The New York Trust Charter will help MoonPay deepen its relationships with global financial institutions. It will also allow the company to offer regulated services that bridge traditional finance with digital assets. Co-founder and CEO Ivan Soto-Wright emphasized the charter as a move towards Wall Street-grade compliance and security.

This step reflects MoonPay’s strategy to increase its role in digital finance.

Thom Hook, MoonPay’s global chief compliance officer, confirmed the company’s next steps. He explained that the company is developing its custody and OTC trading products.

MoonPay plans to expand its services across different states once necessary approvals are secured. The company aims to meet regulatory requirements in each state it operates. Hook noted that the products enabled by the New York Trust Charter would be available in other regions soon.

Other companies, like Paxos and Coinbase, have previously secured a New York Trust Charter. These companies are regulated by the New York Department of Financial Services (NYDFS). This regulatory environment supports crypto businesses in building trust with institutional clients.

Mastercard Partners with MoonPay for Stablecoin Cards

In addition to its new services, MoonPay is pursuing the ability to issue stablecoins. The company sees the New York Trust Charter as an avenue for this potential. Stablecoin services would require further approval under the NYDFS and related legislation, like the Genius Act.

MoonPay introduced its enterprise stablecoin business earlier this year. By integrating with the M0 platform, MoonPay aims to manage fully reserved digital dollars across multiple blockchains. This strategy could expand MoonPay’s product lineup.

The company’s collaboration with Mastercard also reflects its growing influence in the crypto space. In May, Mastercard partnered with MoonPay for stablecoin-powered cards. These cards allow users to convert crypto to fiat currency for everyday transactions.

MoonPay’s continuous growth and expanding service offerings demonstrate its commitment to becoming a key player in the crypto payments sector.

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