MoonPay secures the strictest license in New York! Trust charter unlocks institutional custody accessible across the United States.

MoonPay has received one of the strictest approvals in the U.S. financial regulatory field, obtaining authorization from the New York State Department of Financial Services (NYDFS). MoonPay Trust Company can now start offering digital asset custody and OTC Trading services in the state. This approval transforms MoonPay from a company that provides a simple entry point into a company capable of holding customer assets, processing institutional-level transactions, and operating according to the rules used by some of the largest digital asset financial companies.

From BitLicense to Trust Charter: MoonPay's Regulatory Upgrade Path

(Source: MoonPay)

This authorization is the second important license that MoonPay has obtained from the state of New York this year. In June, the company received a BitLicense, which allows it to conduct business directly with New York consumers, but does not permit custody or large transactions. The new trust charter fills this gap. It allows MoonPay to protect digital assets on behalf of clients and provides services for institutions that require regulated trustees before delving into the cryptocurrency space.

Before obtaining approval, MoonPay's services in New York are very limited. It can offer fiat-to-cryptocurrency purchase and payment services, but cannot hold customer funds or support institutional trading activities. Its role in the state is similar to many early cryptocurrency payment companies, focusing on retail users while relying on external partners to handle more intensive institutional work. This limitation means that MoonPay cannot directly serve business customers and financial institutions that require complete custody solutions.

The regulatory framework of the New York State Department of Financial Services (NYDFS) is recognized by the industry as one of the strictest cryptocurrency regulatory systems in the United States. Since the launch of the BitLicense in 2015, it has become a necessary threshold for cryptocurrency companies to enter the New York market, but its review standards are extremely strict, and the application process is lengthy and costly. The trust charter is a higher level of regulatory approval that grants the holder fiduciary responsibilities similar to traditional financial institutions, requiring companies to adhere to stricter capital requirements, auditing standards, and risk management regulations.

MoonPay has added a trust charter from the New York State Department of Financial Services on top of its existing BitLicense and money transmission license, thereby gaining fiduciary responsibility in the New York cryptocurrency sector. This combination of triple regulatory approvals makes MoonPay one of the few cryptocurrency companies in New York State with full-service capabilities, on par with industry leaders such as the largest U.S. cryptocurrency exchanges and Paxos.

How Trust Deed Reshapes MoonPay's Service Scope

The trust charter changed everything, providing MoonPay with a regulated way to store digital assets, manage digital assets on behalf of clients, and facilitate large OTC Trading for financial institutions and corporate clients. This enables the company to attract institutional clients that have long been restricted by custodial rules. At the same time, it also solidifies MoonPay's position in the United States, allowing it to directly serve all 50 states through a fully compliant approach.

The opening of custodial services has opened up a huge new market for MoonPay. Institutional investors, family offices, hedge funds, and traditional financial institutions prioritize asset security and regulatory compliance when entering the cryptocurrency space. They need not only channels for buying and selling cryptocurrencies but also professional custodial solutions that meet fiduciary standards. The trust charter allows MoonPay to provide these services directly without relying on third-party custodians, thereby improving efficiency and reducing counterparty risk.

OTC Trading services are another key upgrade. When institutional clients carry out large transactions, they typically do not execute on public exchanges, as this would cause significant price slippage and market impact. The OTC market provides services for privately negotiated bulk transactions, with single transaction amounts often reaching millions or even billions of dollars. After obtaining trust charter approval, MoonPay can act as a regulated OTC trading counterpart, providing liquidity, price discovery, and settlement services for institutional clients.

MoonPay Service Capability Comparison

BitLicense Stage: Fiat-to-Crypto Purchase, Payment Processing, Retail User Services

Trust Charter Phase: Digital Asset Custody, Institutional-Grade OTC Trading, Fiduciary Management, Compliance Services in All 50 States

This upgrade aligns with the overall trend of the US market. In recent years, companies that have obtained dual certification of BitLicense and Trust Charter have rapidly entered the institutional services sector. After receiving similar approvals, companies began to offer custody products, launch OTC Trading platforms, expand into new asset types, and establish direct relationships with banks, brokers, and fintech companies that require stricter regulatory assurances. Over time, this development trend has been repeatedly observed, and MoonPay is now at a similar turning point.

Strategic Significance of Global Regulatory Layout and the US Market

The company has obtained licenses in the UK, Australia, Canada, Italy, Ireland, and Jersey, as well as authorization under the EU MiCA framework to provide services to international institutions. The trust charter has formally refined its regulatory framework in the United States, enabling it to directly access institutions in the most strictly regulated financial jurisdictions in the US. This global regulatory layout allows MoonPay to provide seamless global services for multinational corporations and financial institutions.

The timing of approval in New York State is crucial for the entire market. Institutional interest in custody and OTC Trading continues to grow, but access remains uneven across the United States. Many states allow digital asset services, but due to New York State's strict regulations and influence over banking partners, it remains a jurisdiction closely watched by institutions. For companies operating nationwide, the ability to custody assets under the framework of the New York State Department of Financial Service often becomes a prerequisite for acquiring major financial clients.

New York is not only the financial center of the United States but also one of the core hubs of the global financial system. Major investment banks, asset management firms, and hedge funds are headquartered on Wall Street in New York. These institutions prioritize companies that have obtained full regulatory approval in New York when choosing cryptocurrency service providers. The regulatory standards of the NYDFS are also regarded as a benchmark by regulatory agencies in other states and countries, so obtaining approval in New York often provides a credibility endorsement for companies' expansion into other markets.

Synergistic Effects of Product Expansion and Mergers & Acquisitions

MoonPay's approval marks the successful conclusion of the company's rapid product expansion and strategic acquisitions over the past year. This approval comes as MoonPay accelerates its business expansion in the payment and digital asset sectors. This year, the company launched new products, completed acquisitions, and upgraded its infrastructure, building a complete end-to-end technology stack.

MoonPay launched a corporate stablecoin platform in November through the integration with M0, enabling the issuance and management of fully reserved digital dollars. This platform allows corporate clients to issue their own branded stablecoins for supply chain payments, employee salaries, or customer reward programs. The approval of the trust charter enables MoonPay to provide regulated custodial services for these corporate stablecoins, enhancing customer confidence.

In addition, the company has launched MoonPay Commerce, a unified system for cryptocurrency payments across applications and online stores, and has expanded its consumer products through MoonTags, which simplify transfers using personalized identification codes. The launch of these products shows that MoonPay is evolving from a mere deposit channel to a comprehensive provider of cryptocurrency financial infrastructure.

To strengthen its relationship with the U.S. banking industry, MoonPay acquired Meso Network, which previously acquired Helio and Iron. Meso Network focuses on API connections between banks and cryptocurrencies, and this acquisition provides MoonPay with the technical capability to integrate directly with the U.S. banking system. The acquisitions of Helio and Iron enhance its payment processing and DeFi integration capabilities, respectively.

The company has also obtained new regulatory approvals, including a remittance license in Wisconsin. MoonPay stated that the trust charter marks an important step in its global expansion of regulated infrastructure. This multi-dimensional expansion strategy shows that MoonPay is building a complete ecosystem that covers consumers, businesses, and institutions, and the approval of the trust charter is one of the most critical pieces of this ecosystem.