Business 5 min read By Alice Ashford
MoonPay Buys North Capital for $60m to Enter Tokenised Securities Market
Crypto payments firm MoonPay has acquired Utah-based brokerage North Capital Investment Technology in an all-stock deal worth over $60 million, giving it SEC licences to offer tokenised stocks and other real-world assets.
MoonPay has acquired North Capital Investment Technology, a Utah-based brokerage and tokenisation specialist, in an all-stock deal worth more than $60 million, as the crypto payments firm moves to enter the fast-growing market for tokenised securities.
The acquisition, announced on Wednesday, hands MoonPay a portfolio of US Securities and Exchange Commission licences covering broker-dealer transactions, alternative trading system (ATS) operations, transfer agent services and investment advisory. Those licences were a key factor in the decision to buy the company, according to a person familiar with the deal.
North Capital built its business around back-end brokerage services, custody and secondary market sales, and has developed tools to tokenise debt, equity and other assets. Earlier this year it launched an initiative with blockchain firm tZero to offer tokenised assets on alternative trading systems.
MoonPay founder and CEO Ivan Soto-Wright said the deal would help connect different parts of the financial system through modern, programmable infrastructure. «At MoonPay, we're building the regulatory foundation to support mass adoption of tokenised real-world assets and we believe bringing [North Capital's] capabilities into the MoonPay ecosystem can help connect different parts of the financial system through modern, programmable infrastructure,» he said in a statement.
The acquisition reflects a broader push by financial and crypto firms into tokenised securities, which are stocks and other assets issued or represented on a blockchain. Such instruments can be created natively on a blockchain or through special purpose vehicles that hold traditional shares and issue corresponding tokens carrying a claim on the underlying stock.
Competition in the sector has intensified in recent months. Robinhood and Kraken have both expanded their tokenised securities offerings, and MoonPay's move signals its intention to compete for a share of a market that remains small relative to the overall equities market but is growing quickly.
The regulatory environment for tokenised stocks shifted last week when the SEC determined that companies can offer such products under an «innovators exemption», allowing them to do so without fear of violating certain SEC regulations. The decision is likely to encourage more firms to explore tokenised equity offerings.
For MoonPay, the acquisition of North Capital provides not only technology but also the regulatory permissions needed to serve clients seeking to manage tokenised stocks. The company said it did not disclose the financial terms of the deal, but a person familiar with the transaction confirmed the all-stock consideration exceeded $60 million.
The deal is the latest sign that crypto firms are seeking to bridge traditional finance and blockchain-based markets. By bringing North Capital's brokerage and tokenisation capabilities in-house, MoonPay aims to offer a fuller suite of services to clients interested in tokenised real-world assets, from issuance to custody and secondary trading.
North Capital's existing partnerships, including its work with tZero on alternative trading systems, could also give MoonPay a foothold in the infrastructure that underpins tokenised asset trading. The company's SEC licences cover activities that are essential for operating in regulated securities markets, making the acquisition a shortcut to compliance for MoonPay.
While tokenised securities remain a niche part of the financial system, the entry of major crypto and brokerage firms suggests the category is gaining momentum. The SEC's innovators exemption has added further impetus, and market participants expect more deals and product launches in the coming months.
MoonPay's acquisition of North Capital is subject to customary closing conditions. The company did not provide a timeline for completing the transaction.
6
