MoonPay eyes tokenized securities in reported North Capital deal over $60 million

MoonPay announced Wednesday that it acquired North Capital Investment Technology to enter tokenized securities. A person familiar with the deal said MoonPay paid over $60 million in an all-stock transaction. MoonPay did not disclose the acquisition's financial terms. North Capital provides back-end brokerage services and tools to tokenize debt, equity, and other assets. North Capital also offers custody and secondary-market sales. Earlier this year, North Capital launched an initiative with blockchain firm tZero to offer tokenized assets on alternative trading systems. MoonPay founder and CEO Ivan Soto-Wright said North Capital's capabilities could help connect parts of the financial system through programmable infrastructure. The person familiar with the deal said North Capital's SEC licenses were a key factor in MoonPay's decision. The licenses cover broker-dealer transactions. They also cover alternative trading system operations. They cover transfer agent services. They cover investment advisory services. The licenses are likely to help MoonPay add services for clients managing tokenized stocks. Companies can issue and manage tokenized stocks directly on a blockchain. Companies can also use special-purpose vehicles that hold traditional stocks and issue tokens linked to those shares. The SEC recently deemed that companies can offer tokenized stocks under an innovators exemption. The exemption allows companies to offer them without violating certain SEC regulations.