MoonPay Gains NYDFS Trust Charter for Crypto Services

The New York Department of Financial Services (NYDFS) has granted MoonPay a trust charter, representing a substantial expansion of the cryptocurrency payments company’s regulatory permissions in one of the world’s most stringent financial markets. This approval follows MoonPay’s acquisition of a BitLicense from the NYDFS in June, making the company one of only a handful of cryptocurrency entities to hold both regulatory authorizations. The trust charter specifically authorizes MoonPay to provide cryptocurrency custody services and over-the-counter (OTC) trading to customers in New York, significantly broadening the company’s service capabilities in the state.

The dual regulatory approval represents a strategic achievement for MoonPay, as New York’s regulatory framework is widely regarded as one of the most comprehensive and demanding in the cryptocurrency industry. The BitLicense, which MoonPay secured in June, allows companies to conduct virtual currency business activities in New York, while the newly acquired trust charter provides additional authority for custody and trading services. This combination of regulatory clearances positions MoonPay to offer a more comprehensive suite of financial services to both individual and institutional clients operating within New York’s regulated financial ecosystem.

With the trust charter approval, MoonPay gains authorization to provide cryptocurrency custody services, allowing the company to securely store digital assets on behalf of clients. This service is particularly crucial for institutional investors who require regulated custodians for their cryptocurrency holdings. Additionally, the charter enables MoonPay to conduct over-the-counter trading, facilitating large cryptocurrency transactions that occur directly between parties rather than through public exchanges. These OTC trades are typically preferred by institutional investors and high-net-worth individuals seeking to execute large orders without significantly impacting market prices.

The expansion into custody and OTC trading services represents a natural progression for MoonPay’s business model, which has historically focused on payment infrastructure and fiat-to-crypto onboarding. By adding these institutional-grade services, MoonPay can now cater to a broader client base that includes financial institutions, hedge funds, and corporate treasuries seeking regulated cryptocurrency service providers. The company’s ability to offer both retail-focused payment solutions and institutional services under NYDFS oversight creates a comprehensive regulatory framework for its operations in New York.

MoonPay co-founder and CEO Ivan Soto-Wright emphasized the strategic importance of the trust charter approval, stating that it would enable the company to ‘deepen relationships with global financial institutions’ and expand its existing regulated services. This regulatory clearance provides MoonPay with enhanced credibility when engaging with traditional financial entities that prioritize working with properly licensed cryptocurrency service providers. The ability to offer regulated custody and OTC trading services positions MoonPay as a potential bridge between traditional finance and the cryptocurrency ecosystem.

The sequential regulatory approvals—first the BitLicense in June followed by the trust charter—demonstrate MoonPay’s methodical approach to compliance and its commitment to operating within established regulatory frameworks. This strategy contrasts with many cryptocurrency companies that have historically taken a more adversarial stance toward financial regulation. By securing both authorizations, MoonPay has positioned itself to capitalize on the growing institutional interest in digital assets while maintaining compliance with one of the most rigorous state-level regulatory regimes in the United States.

The dual regulatory achievement comes at a time when institutional adoption of cryptocurrency is accelerating, with traditional financial firms increasingly seeking regulated partners for digital asset services. MoonPay’s expanded service capabilities in New York could serve as a template for its regulatory strategy in other jurisdictions, potentially enabling similar expansions in other markets with comprehensive cryptocurrency frameworks. The company’s success in navigating New York’s regulatory landscape suggests a viable path forward for cryptocurrency firms seeking to integrate with traditional financial systems while maintaining regulatory compliance.