MoonPay Nears $5B Valuation with ICE Investment & CFTC Chair Hire

According to a Bloomberg report citing sources familiar with the matter, MoonPay is close to finalizing a fundraising round that could see Intercontinental Exchange (ICE) become a key investor. ICE, the powerhouse behind the NYSE and a cornerstone of traditional finance, exploring an investment in a crypto-native firm is a powerful signal of institutional validation. The talks point toward MoonPay targeting a valuation around $5 billion, a figure that underscores the platform’s rapid growth and the perceived value of its business model. This potential capital infusion from a titan of TradFi would provide MoonPay with not only financial resources but also strategic credibility as it seeks to bridge the gap between conventional finance and digital assets.

MoonPay’s business, which simplifies cryptocurrency trading by integrating with familiar payment methods like Apple Pay, PayPal, and Venmo, appears to be a strategic fit for ICE’s evolving landscape. The investment talks coincide with MoonPay’s recent regulatory milestone in New York, a key market for ICE. By obtaining a Limited Purpose Trust Charter from the New York Department of Financial Services (NYDFS), MoonPay has expanded its authority to offer custody and other crypto services in the state. This charter, which complements its existing BitLicense, places the company in a regulated cohort alongside major players like Coinbase and PayPal, making it a more attractive partner for a regulated entity like ICE.

Perhaps even more significant than the financial backing is MoonPay’s recruitment of Caroline Pham, the acting chair of the Commodity Futures Trading Commission (CFTC). Pham, who announced her move to become MoonPay’s chief legal and administrative officer, has been a central figure in shaping U.S. crypto policy. Her tenure at the CFTC, which began in April 2022, was marked by a series of initiatives designed to integrate digital assets into the regulated financial framework. Under her leadership, the agency expedited measures to allow spot crypto trading on futures exchanges and launched a pioneering digital assets pilot program permitting the use of Bitcoin (BTC) and Ethereum (ETH) in derivatives markets.

Pham’s regulatory agenda focused on executing presidential orders for clarity and efficiency, and she also implemented operational reforms at the CFTC that reportedly led to nearly $50 million in annual savings. Her decision to join MoonPay, she stated, was guided by personal connections, beginning with a meeting at a Christie’s Art + Tech dinner in 2023 with MoonPay president Keith Grossman. Grossman highlighted the strategic nature of the hire, stating, “MoonPay has really matured, and Caroline is the exact type of leader with the exact type of big bank and regulatory experience that’s needed for us to be able to move to the next level.” Her imminent departure follows the expected confirmation of Mike Selig as the CFTC’s permanent chair.

The confluence of ICE’s potential investment and Pham’s appointment creates a powerful narrative for MoonPay’s future. The company is strategically assembling the key components required to thrive in an increasingly regulated crypto environment: significant capital, deep regulatory expertise, and formal approvals from stringent authorities like the NYDFS. This positions MoonPay not just as a payments facilitator, but as a comprehensive crypto services platform capable of custody and sophisticated financial operations under the watchful eye of regulators.

This two-pronged strategy directly challenges incumbents. By leveraging Pham’s insider knowledge of CFTC processes and her relationships within Washington, MoonPay can navigate future regulatory landscapes more adeptly. Meanwhile, the backing of ICE provides a stamp of approval from traditional finance, potentially easing partnerships and user acquisition. Together, these moves suggest MoonPay is executing a deliberate plan to mature from a fintech startup into a regulated financial institution for the digital age, using New York’s strict framework as a springboard for broader ambitions.