CryptoSlate
MoonPay has signed a definitive agreement to acquire North Capital Investment Technology, a deal that could bring an existing private-securities trading venue into the crypto payments company’s group. Both boards approved the agreement, announced Sept. 23, but regulatory approvals and other closing conditions remain. The companies did not disclose a purchase price or firm closing date.
Why it matters
North Capital provides services to private-securities issuers, professional intermediaries, fund managers and investors, including onboarding, transaction processing, custody and secondary trading. Its subsidiary, North Capital Private Securities Corporation, is a registered broker-dealer that operates PPEX, an alternative trading system where eligible securities can trade outside traditional stock exchanges. The SEC’s June 30 ATS list named the firm and PPEX before the proposed acquisition.
If completed, the transaction would give MoonPay an operating securities venue and brokerage business alongside its infrastructure for moving money between conventional and digital assets. North Capital also has an investment-advisory business. The companies have not described a customer-facing securities product, however, and the venue, regulated entities and any future MoonPay interface are distinct parts of a potential offering.
Market impact
For MoonPay customers, the announcement changes no stated access to private-securities trading. There is no launch date, eligibility guidance or announced route into PPEX. Even after a deal closes, customers would need further details on which securities might be offered, through which entity, to whom and when.
The near-term milestones are regulatory clearance and completion of the merger. The companies said the deal also depends on customary closing conditions and cautioned that there is no assurance it will close, or when. PPEX indicates the secondary-trading infrastructure MoonPay could add if the acquisition succeeds; customer access remains a separate, unannounced step.
Frequently asked questions
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What would North Capital add to MoonPay if the acquisition closes?
North Capital brings securities services including investor onboarding, transaction processing, custody and secondary trading, as well as a registered broker-dealer and the PPEX alternative trading system.
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What is PPEX?
PPEX is an alternative trading system operated by North Capital Private Securities Corporation, a registered broker-dealer. Eligible securities can trade there outside traditional stock exchanges.
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Can MoonPay customers access private securities through the deal?
No customer access has been announced. The companies provided no launch date, eligibility rules or route into the venue.
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What must happen before the acquisition is completed?
The deal remains subject to regulatory approvals and other customary closing conditions. The companies have not provided a firm closing date and said there is no assurance it will close.
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What details would MoonPay still need to announce for a securities product?
Customers would need details on which securities might be offered, which entity would offer them, who would be eligible and when access could begin.
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