New York Stock Exchange talks about investment! $5 billion valuation to acquire MoonPay's Crypto gateway

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, is in talks to acquire a stake in crypto payment provider MoonPay, boosting its current valuation target to $5 billion, a significant 47% increase from $3.4 billion in 2021. This marks its latest move following investments in market prediction platform Polymarket, valued at up to $2 billion, and the institutional-grade trading platform Bakkt.

The Three Fronts of ICE’s Crypto Expansion

ICE’s investment in MoonPay is not an isolated event but part of its systematic layout in the crypto space. Currently, ICE is advancing on three fronts in the crypto market, forming a complete ecosystem from trading, prediction, to payments.

The first front is the institutional trading platform Bakkt. ICE launched Bakkt in 2018, offering Bitcoin futures and custody services, targeting institutional investors and corporate finance. Although Bakkt’s market performance has been underwhelming, it has accumulated valuable experience in crypto asset custody and regulatory compliance.

The second front is the prediction market Polymarket. ICE’s investment of up to $2 billion in Polymarket reflects the surge of interest in prediction markets on Wall Street following Trump’s victory. Prediction markets are essentially derivative trading, and as the world’s largest derivatives exchange operator, ICE’s inclusion of its crypto version is strategically sound.

The third front is the payment gateway represented by MoonPay. If the investment materializes, ICE will control the trading side (Bakkt), the prediction side (Polymarket), and the payment side (MoonPay), creating a full cycle from fiat entry to trading exit. This vertical integration strategy is a typical approach for traditional financial giants entering the crypto space.

The Three Pillars of ICE’s Crypto Ecosystem

Bakkt (Trading & Custody): Institutional Bitcoin futures and custody services, with limited market performance but accumulated compliance experience

Polymarket (Prediction Market): Up to $2 billion investment, deploying a crypto version driven by event-based trading

MoonPay (Payment Gateway): $5 billion valuation stake, controlling fiat and crypto exchange gateways

This layout indicates ICE’s view of the crypto market: payments and custody will be the first to achieve scalable profitability, rather than pure trading or speculation. MoonPay handles billions of dollars in fiat-to-crypto transactions annually, and this stable volume and fee income are more attractive than the highly volatile profits of exchanges.

MoonPay’s Transformation from a Crypto Purchase Tool to Financial Infrastructure

Founded in 2019, MoonPay initially positioned itself as a “buy crypto gateway” that allows ordinary users to purchase cryptocurrencies with credit cards or bank transfers. This service was highly valuable at the time, as most crypto exchanges had complex and unfriendly deposit processes. MoonPay integrated with platforms like Coinbase, Binance, MetaMask, enabling users to complete fiat-to-crypto transactions within familiar interfaces.

However, the ceiling of the buy-crypto business quickly became apparent. Fee competition was fierce, profit margins were squeezed, and the business heavily depended on market trading activity—booming in bull markets and collapsing in bear markets. More importantly, as a simple buy-crypto tool, it lacked a moat; competitors could easily replicate it.

MoonPay’s strategic shift began in 2023. The company has acquired at least four startups and obtained NYDFS licensing, enabling it to offer institutional-grade custody and trading services. This license, complemented by existing BitLicense, allows MoonPay to compete directly with giants like Coinbase and PayPal. This transformation elevates MoonPay from a B2C buy-crypto tool to a B2B provider of financial infrastructure.

Custody services are a key breakthrough. One of the biggest barriers for institutional investors entering crypto is the lack of custody solutions meeting traditional financial standards. Through NYDFS licensing, MoonPay can provide compliant institutional custody, including cold/hot wallet separation, multi-signature, insurance coverage, and regular audits. Such compliant custody is essential for Wall Street institutions to allocate crypto assets.

Stablecoin operations are another growth point. Recently, MoonPay partnered with publicly listed Exodus to launch a USD stablecoin, challenging USDC and PYUSD market share. This move shows MoonPay’s ambition to be a “issuer” rather than just a “pipeline.” The profit from stablecoin issuance is substantial—Tether’s annual profit runs into billions, mainly from interest on reserve assets (U.S. Treasuries). If MoonPay’s stablecoin gains market share, it could open new revenue streams.

CFTC Senior Appointments and IPO Preparation

A few days ago, MoonPay announced a major personnel change: Caroline Pham, acting Chair of the CFTC, will join the team as Chief Legal Officer (CLO) after the new Chair Mike Selig takes office. Pham has extensive experience on Wall Street and has promoted innovation and crypto-friendly policies at the CFTC, making her one of the most knowledgeable regulators regarding the direction of oversight.

This appointment carries strategic significance beyond appearances. First, Pham’s regulatory network built during her tenure at the CFTC will give MoonPay a significant advantage in future regulatory reviews. Second, her deep understanding of CFTC policy directions can help MoonPay proactively prepare for upcoming regulations. Third, her joining signals to the market that MoonPay is preparing for an IPO.

The $5 billion valuation target suggests MoonPay may seek to go public within the next 12-24 months. Although this valuation is a 47% increase from $3.4 billion in 2021, the potential scale of the crypto payments and custody markets leaves ample room for growth. Coinbase’s current market cap is around $40-50 billion; capturing just 10% of that would justify a $5 billion valuation.

ICE’s investment also paves the way for MoonPay’s IPO. When a company receives investment from the NYSE parent, its prospects for listing on NYSE significantly improve. This “invest first, go public later” model is common on Wall Street, allowing ICE to secure favorable early valuation and lay the groundwork for future underwriting.

Trump Effect and the Crypto Financing Boom

Recently, Trump’s policies have redefined Wall Street’s attitude toward digital assets, fueling a surge in fundraising this year. PitchBook data shows that by 2025, crypto and blockchain companies have raised nearly $19 billion, reaching a new high since 2022. This rebound follows a crypto winter in 2022-2023, when funding plummeted to $5-8 billion annually. The $19 billion figure indicates institutional confidence in the crypto market is recovering.

Ripple also raised $500 million in November, with a valuation of $40 billion. Despite some market hype over inflated valuations, it underscores the rapid increase in institutional demand for stablecoin payments. This demand is driven not by retail speculation but by enterprise cross-border payments, institutional fund management, and DeFi protocol settlements.

The core of the Trump effect is regulatory clarity. After taking office, Trump immediately dismissed SEC Chair Gensler, appointed crypto-friendly Paul Atkins, and ordered the creation of a national Bitcoin reserve. The Federal Reserve withdrew its 2023 restrictions on banks engaging in crypto activities, and the FDIC initiated the GENUIS bill to regulate stablecoins. These actions have cleared major regulatory uncertainties, encouraging Wall Street institutions to invest heavily.

MoonPay’s timing for this funding is highly strategic. Under a clear regulatory environment, rising institutional demand, and Trump’s endorsement, a $5 billion valuation is more easily accepted by investors. Conducting the same financing during Biden’s administration might require a 30-50% discount. The policy tailwinds far outweigh the surface valuation figures.

For the crypto industry, ICE’s investment in MoonPay marks another milestone, signaling that the core financial infrastructure providers on Wall Street now recognize the strategic value of crypto payments. As NYSE’s parent company is involved, other institutions will likely experience FOMO, potentially triggering a new wave of institutional entry.