MoonPay Expands Regulated Services
MoonPay, a prominent player in the cryptocurrency payment sector, announced a significant expansion of its regulated services following the acquisition of a trust charter from the New York Department of Financial Services (NYDFS). This latest development, revealed in a press statement on Tuesday, enables MoonPay to enhance its offerings by providing crypto custody solutions and over-the-counter trading options specifically within New York’s jurisdiction.
CEO’s Vision and Previous Achievements
The company’s co-founder and CEO, Ivan Soto-Wright, expressed that this regulatory milestone would facilitate deeper partnerships with global financial institutions, thereby broadening their current suite of regulated services. Previously, in June, MoonPay received a BitLicense from the NYDFS, which permits them to operate in the digital asset space.
Industry Context and Comparisons
Other notable companies that have embraced both a trust charter and a BitLicense from NYDFS include well-known entities such as Ripple Labs, Coinbase, and NYDIG. Interestingly, both Coinbase and Ripple have sought a federal trust charter from the US Office of the Comptroller of the Currency, yet a decision from this regulatory body remains pending.
Regulatory Changes and Future Initiatives
The recent regulatory changes align with broader efforts in the crypto sector, particularly in response to the GENIUS Act, enacted in July. This legislation establishes a regulatory framework aimed at payment stablecoins. While the act is not yet in force, on November 13, MoonPay launched an initiative enabling issuers to create and distribute their own stablecoins, indicating a proactive approach to adapting to these new regulatory conditions.
Impact on Traditional Financial Institutions
Moreover, the implications of the stablecoin framework seem to resonate beyond the crypto sphere, influencing traditional financial institutions. For instance, Visa announced enhancements to its settlement platform to include stablecoin options, and Brian Moynihan, the CEO of Bank of America, has mentioned the potential collaboration with other financial entities to develop a stablecoin.
