MoonPay secures New York trust charter, expands regulated services

MoonPay, a prominent player in the cryptocurrency payments sector, has recently achieved a significant milestone by securing a trust charter from New York’s Department of Financial Services (NYDFS). This approval comes on the heels of the company obtaining a BitLicense in June, making it one of the few crypto firms to hold both regulatory approvals. With this new charter, MoonPay is poised to broaden its range of regulated services.

MoonPay receives a trust charter from New York's financial regulator

In a formal announcement, MoonPay revealed that it has been granted a trust charter by New York’s financial regulator. This regulatory endorsement allows the company to engage in activities such as cryptocurrency custody and over-the-counter trading services within the state. This development is crucial for MoonPay as it seeks to solidify its position in the competitive crypto market.

Expansion of regulated services to include crypto custody and trading

With the newly acquired trust charter, MoonPay plans to enhance its offerings significantly. The ability to provide crypto custody services will enable it to manage and safeguard digital assets for clients, while over-the-counter trading services will allow for larger transactions without affecting the market price. This expansion is expected to attract more institutional clients looking for secure and compliant ways to interact with cryptocurrencies.

New charter enhances relationships with global financial institutions

MoonPay’s co-founder and CEO, Ivan Soto-Wright, expressed that this regulatory approval will help the company strengthen its relationships with global financial institutions. By offering more regulated services, MoonPay aims to build trust and credibility among traditional financial players, facilitating smoother integrations of cryptocurrency services into their operations.

MoonPay's initiatives in the emerging stablecoin market

The recent passing of the GENIUS Act in the US, which establishes a framework for payment stablecoins, has prompted various crypto companies, including MoonPay, to explore new opportunities. On November 13, MoonPay announced an initiative that allows issuers to create and distribute their own stablecoins. This move indicates a strategic pivot toward stablecoin infrastructure, which could reshape the landscape of digital payments and finance.

As the regulatory environment continues to evolve, MoonPay’s proactive steps position it favorably within the cryptocurrency ecosystem. The combination of a trust charter and a BitLicense not only enhances its service offerings but also reflects a broader trend of increasing regulation in the crypto industry.