By cryptoadmin Crypto payments firm MoonPay has gained regulatory approval to safeguard customers’ digital assets after receiving a New York Trust Charter, according to a Tuesday press release.
In addition to being able to hold digital assets on customers’ behalf, the company said the charter will also allow it to facilitate over-the-counter trades—which occur directly between two parties, as opposed to taking place on a centralized exchange.
The milestone reflects the company’s commitment to Wall Street-grade compliance and security, co-founder and CEO Ivan Soto-Wright said in a statement.
“It enables us to deepen relationships with global financial institutions, expand our regulated service offerings, and continue bridging traditional and digital finance,” he added.
Paxos, known then as itBit, became the first crypto-native firm to secure a New York Trust Charter over a decade ago. These companies are regulated under the New York Department of Financial Services, which also regulates crypto firms under its BitLicense regime.
Only a limited number of companies have secured a BitLicense and New York Trust Charter, including crypto exchange Coinbase, payments giant PayPal, XRP-linked Ripple, and NYDIG, a Bitcoin-focused financial services firm.
Meanwhile, Coinbase, stablecoin issuer Circle, and crypto exchange Crypto.com are among those aiming to secure national trust bank charters. Anchorage Digital became the first federally chartered digital asset bank in 2021.
Although stablecoin-related services would need approval under the NYDFS, MoonPay said the charter provides it with an avenue toward issuing stablecoins under the Genius Act. Experts say the legislation, passed this summer, could unlock competition from the likes of Citigroup.
Earlier this month, the company introduced its enterprise stablecoin business. By integrating with infrastructure platform M0, MoonPay said the business enables it to “manage fully reserved digital dollars across multiple blockchains.”
Historically, MoonPay has allowed customers to purchase crypto through various methods, including Apple Pay and debit cards. In May, Mastercard said it was tapping MoonPay for stablecoin-powered cards, which convert crypto to fiat for payments automatically.