ICE Backing Spurs MoonPay Valuation Leap to $5 Billion in Crypto Push

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), is in advanced talks to invest in crypto payments firm MoonPay as part of a funding round that could value the company at nearly $5 billion according to reports. The valuation marks a 47% increase from MoonPay's previous $3.4 billion valuation, achieved just a month after the firm secured critical regulatory approvals in New York.

The investment signals ICE's continued expansion into digital asset markets and highlights the growing institutional interest in crypto infrastructure.

MoonPay, which allows users to buy and sell cryptocurrencies using conventional payment methods like PayPal, Apple Pay, and Venmo, recently obtained a Limited Purpose Trust Charter from New York's Department of Financial Services. This regulatory milestone enables the firm to expand custody and institutional trading services in New York, positioning it alongside major players like Coinbase and PayPal. The company has also secured a Money Transmitter License in Wisconsin, further strengthening its compliance footprint across the U.S.

The potential investment by ICE comes as MoonPay continues to broaden its product offerings and partnerships. Earlier this week, the firm announced an exclusive collaboration with Rumble to launch Rumble Wallet, a digital asset solution allowing content creators to manage earnings and execute trades without relying on traditional banking systems. The same day, MoonPay also revealed that Caroline Pham, the acting chair of the Commodity Futures Trading Commission (CFTC), will join the firm as chief legal officer and chief administrative officer. Pham's tenure at the CFTC was marked by significant regulatory developments, including the launch of a digital asset markets pilot program and the modernization of trading rules.

ICE's Strategic Expansion into Digital Assets

ICE has been increasingly active in the digital asset space, having already invested $2 billion in Polymarket, a prediction market platform that saw heightened usage during the 2024 U.S. election cycle according to reports. The NYSE parent also operates Bakkt, its own crypto platform, and has recently engaged in technical partnerships, such as with Chainlink, to enhance blockchain-based data delivery. These moves underscore ICE's broader strategy to diversify its offerings and align with the rapidly evolving financial technology landscape.

The potential MoonPay investment is part of a broader trend among traditional financial institutions to integrate with the crypto ecosystem. U.S. Bancorp and PNC Bank, for example, have both launched crypto-related services in the past month. ICE's involvement is seen as a strategic play to capitalize on the sector's growth while leveraging its existing market infrastructure and regulatory expertise.

Leadership Shifts and Regulatory Focus

Caroline Pham's move to MoonPay is a significant leadership change that highlights the company's emphasis on regulatory alignment and institutional legitimacy. Pham, who served as a CFTC commissioner and acting chair, has been a vocal advocate for responsible crypto innovation. Her tenure included initiatives like the CFTC's "Crypto Sprint" and efforts to streamline trading regulations for digital assets. At MoonPay, she is expected to help shape the company's regulatory strategy and policy engagement in Washington, D.C.

Pham's transition will occur once the Senate confirms Mike Selig, President Donald Trump's nominee for permanent CFTC chair. In a post on X, Pham expressed optimism about the future, stating she is "looking forward to a successful confirmation" and a "smooth transition." Her departure from the CFTC reflects a broader trend of high-level regulators joining the private sector amid a more crypto-friendly policy environment.

Expanding Product Offerings and Partnerships

MoonPay's regulatory progress has paved the way for new business initiatives and collaborations. The company recently partnered with Exodus to launch a U.S. dollar-backed stablecoin aimed at improving onchain transactions and driving mainstream adoption according to reports. The stablecoin is designed to meet user expectations for ease of use, a key factor in the broader acceptance of digital assets.

In another partnership, MoonPay and Rumble are launching a wallet solution that enables users to trade and manage digital assets directly within the Rumble platform. These developments demonstrate MoonPay's shift from a simple on-ramping service to a full-service custodian capable of handling institutional-level transactions and user-friendly interfaces.

Regulatory Compliance and Market Positioning

MoonPay's regulatory achievements, including its New York BitLicense and Limited Purpose Trust Charter, are critical to its market positioning. The firm now operates under the same regulatory framework as major crypto players, giving it access to a wider range of services and clients. Ivan Soto-Wright, MoonPay's co-founder and CEO, has emphasized the importance of compliance in building trust with institutional partners and expanding the company's footprint.

The firm's compliance efforts have not gone unnoticed. MoonPay was an early participant in the CFTC's CEO Forum, which brought together industry leaders to discuss the launch of the digital asset markets pilot program. These engagements help reinforce MoonPay's reputation as a responsible and forward-thinking player in the crypto industry.