MoonPay eyes tokenized securities push with $60 million acquisition of brokerage firm North Capital

MoonPay, a global firm specializing in fiat-to-crypto conversions, is planning to expand into the rapidly growing field of tokenized securities. On Wednesday, the company announced it had acquired North Capital Investment Technology, a Utah-based company offering back-end brokerage services and tools for tokenizing debt, equity, and other assets.

MoonPay's CEO, Ivan Soto-Wright, emphasized the importance of building regulatory foundations to support mass adoption of tokenized real-world assets, stating that North Capital's capabilities can help connect various parts of the financial system through modern, programmable infrastructure.

Though MoonPay has not disclosed the exact financial terms of the acquisition, it is believed to have been over $60 million in an all-stock deal. North Capital's expertise in services like custody and secondary market sales played a crucial role in MoonPay's decision to acquire the company. The deal also included North Capital's extensive portfolio of SEC licenses, which cover activities such as broker dealer transactions, ATS trading, transfer agent services, and investment advisory.

These licenses are expected to enable MoonPay to add services to help its clients manage tokenized stocks, which are issued and managed natively on a blockchain or via special purpose vehicles holding traditional stocks and issuing corresponding tokens.

The acquisition comes at a time when tokenized stocks are gaining traction. Earlier this year, blockchain firm tZero and North Capital launched an initiative to offer tokenized assets on alternative trading systems (ATSs). Moreover, the Securities and Exchange Commission (SEC) recently ruled that companies can offer tokenized stocks under an "innovators exemption," allowing them to do so without violating certain SEC regulations.

Tokenized stocks currently represent a small fraction of the overall equities market, but their growth potential is significant.