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MoonPay Secures New York Trust License for Crypto Custody and OTC Trading

According to NYDFS, MoonPay’s dual licensing could strengthen institutional trust and encourage wider adoption of its regulated crypto services in New York.

Summary

MoonPay announced it has secured a limited-purpose trust charter from the New York State Department of Financial Services, complementing its existing BitLicense. This dual approval allows MoonPay to offer cryptocurrency custody and over-the-counter trading services in New York, joining a select group of firms like Coinbase, PayPal, Ripple, and NYDIG with both licenses. The regulatory milestone is expected to enhance confidence among institutional and retail clients, potentially influencing broader crypto market adoption.

Terms & Concepts
  • BitLicense: A business license issued by the New York State Department of Financial Services for companies involved in virtual currency activities.
  • Limited Purpose Trust License: A New York State regulatory authorization allowing companies to operate limited fiduciary activities such as custody of digital assets.
  • Over-the-Counter (OTC) Trading: Direct trading of cryptocurrencies between parties outside of public exchanges, often for large transactions.