Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, is negotiating to make an investment in crypto payments firm MoonPay. The discussions will include a new round of funding, indicating a greater involvement of Wall Street in digital assets.
According to a Bloomberg report, talks have already advanced but are not yet finalized. In this round, MoonPay is pursuing a valuation of approximately $5 billion.
The potential investment reveals the integration of traditional market players into crypto infrastructure. Major companies are investing in companies that enable payments and access, instead of trading the tokens.
It is also an indication of increased interest in licensed crypto services in America. MoonPay offers a platform that lets users swap between fiat and cryptocurrencies. Exchanges, wallets and consumer-based platforms use its tools.
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The last round of funding for MoonPay was held at the end of 2021 and valued the company at approximately $3.4 billion. The increased target valuation implies that investors believe crypto payments now have sustained demand.
The discussions are happening after ICE had previously ventured into other markets related to blockchain. ICE is prepared to invest up to $2 billion in the prediction markets platform, Polymarket.
That was one of the biggest investments related to blockchain technology. The changing political environment in the U.S. is also a reason for Wall Street’s growing interest.
Since Donald Trump became president, the U.S. has become more receptive to digital assets. This has prompted banks and exchanges to explore re-engaging with the crypto industry.
Still, MoonPay has expanded this year. The company acquired more than 4 start-ups to expand its product offerings. The stablecoin business was also started after clearer regulations.
In July, Congress enacted a landmark legislation on stablecoin. The act favored increased utilization of tokens pegged to fiats such as the U.S dollar. Such a framework minimized risks to payment-oriented crypto firms.
Furthermore, MoonPay is enhancing its regulatory position with its expansion strategies. This week, it announced that acting CFTC chair Caroline Pham will come on board as chief legal officer.
With her appointment, MoonPay will gain greater credibility with regulators and institutional partners. It also portrays increased pressure on maintaining compliance in crypto payments. The wider crypto funding space is getting back on track.
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