MoonPay Deal Would Add Regulated Private-Market Infrastructure
The proposed merger with North Capital would expand MoonPay into brokerage, advisory, clearing, custody and secondary trading for private securities.
MoonPay’s proposed merger with North Capital Investment Technology would give the crypto infrastructure company access to regulated brokerage, advisory, clearing, custody and secondary-trading infrastructure for private securities.
MoonPay entered a definitive merger agreement with North Capital on Sept. 23. North Capital would become a wholly owned subsidiary if the transaction closes. Both companies’ boards unanimously approved the deal, which remains subject to regulatory approvals and other customary conditions.
The companies have not disclosed financial terms. The proposed merger would extend MoonPay beyond fiat and crypto infrastructure into services for private-securities issuers, fund managers, intermediaries and investors.
North Capital provides investor onboarding, capital raising, transaction processing, escrow, custody and secondary trading. Its regulated businesses include broker-dealers, an alternative trading system, a transfer agent and an investment adviser.
The company’s platform has facilitated more than $8.7 billion in primary and secondary transaction volume. Its Public Private Execution Network, or PPEX, supports more than 1,250 approved assets for secondary trading. The 1,250-asset count does not identify all of the approved assets as tokenized.
North Capital Private Securities Corporation operates PPEX, an SEC-registered alternative trading system. An ATS is a regulated trading venue but is not a traditional stock exchange. Its registration does not mean the trading system has received approval for every security or transaction available through the venue.
The proposed merger does not establish that MoonPay customers can currently buy or sell tokenized securities through the platform. No customer-facing tokenized-securities product has been announced.
“All financial markets are becoming more technology driven every year, but the infrastructure behind them is still fragmented across different providers, tech stacks, and workflows,” MoonPay CEO and founder Ivan Soto-Wright said.
“We’re building the regulatory foundation to support mass adoption of tokenized real-world assets,” Soto-Wright said.
North Capital founder and CEO James P. Dowd said the companies planned to combine their teams and capabilities while continuing to support North Capital’s clients and partners.
If completed, the merger would give MoonPay access to broader securities-market functions. Closing remains dependent on regulatory approvals and customary conditions.
