$100M Bet on Institutional Crypto
MoonPay, a global crypto payments provider serving nearly 30 million customers, has acquired Israeli startup Sodot in an all-stock deal valued at approximately $100 million. The transaction, which closed in April according to coindesk.com, marks one of MoonPay’s largest moves to date as it pivots toward serving institutional clients like banks and asset managers.
Sodot, founded in 2023, specializes in self-hosted multi-party computation (MPC) infrastructure—a security technology that enables multiple parties to jointly manage cryptographic keys without exposing them to a single point of failure. This acquisition forms the technological backbone of MoonPay’s new institutional division, which aims to provide secure crypto services for large financial institutions, asset managers, trading firms, and exchanges.
Sodot’s MPC platform will underpin MoonPay Institutional, a division targeting clients managing assets above $100 million.
On paper, MoonPay is best known for retail crypto onboarding and checkout solutions, but this $100 million move signals a significant shift toward the enterprise market.
Ex-CFTC Chair to Helm New Unit
Leadership for MoonPay’s institutional business comes with regulatory experience: Caroline D. Pham, who joined the company as chief legal officer and chief administrative officer in December, will head the new unit. Pham previously served as acting chair at the U.S. Commodity Futures Trading Commission (CFTC), bringing direct oversight experience from one of the key federal agencies regulating derivatives and crypto markets.
Under Pham’s direction, MoonPay Institutional intends to target traditional finance clients interested in trading digital assets, managing tokenized securities, handling payments, wallet management solutions, and even stablecoin issuance. The company’s goal is clear: attract established players who demand robust security and regulatory compliance—areas where Pham’s background is expected to play a critical role.
It’s uncertain how quickly traditional finance will embrace these offerings given ongoing regulatory scrutiny in major markets.
Israeli Startup Powers Institutional Pivot
Sodot’s technology will serve as the key management layer for all of MoonPay Institutional’s offerings. Multi-party computation (MPC) allows institutions to keep control over their assets without relying on a single custodian or exposing private keys—a common vulnerability in digital asset management. This approach aligns with rising demand among banks and trading firms for self-hosted solutions that reduce counterparty risk while maintaining operational flexibility.
MoonPay has already demonstrated an appetite for acquisitions that reinforce its infrastructure stack. Prior purchases include stablecoin platform Iron and crypto checkout firm Helio. However, Sodot stands out due to its focus on institutional-grade security and its rapid rise since launching just last year.
Why It Matters
For years, MoonPay has focused on powering crypto access for consumers and startups—serving as the underlying infrastructure for 500 companies worldwide. By acquiring Sodot and launching MoonPay Institutional, the company is betting that large financial firms will soon require secure gateways into crypto markets as regulations mature and demand for tokenized assets grows.
The $100 million price tag reflects both the perceived value of MPC technology and the urgency among fintechs to secure trusted partners before institutional adoption accelerates further. Yet despite this investment, it remains unclear how quickly traditional finance will onboard these new services or whether regulatory headwinds could slow progress.
Key Tech Underpins Expansion Plans
Sodot’s self-hosted MPC infrastructure is now positioned as the core security layer for MoonPay’s expansion into institutional markets. The technology enables large organizations to independently manage digital assets with reduced risk of internal fraud or external breaches—a requirement for regulated entities handling client funds at scale.
While some competitors offer custodial solutions where private keys are held by third parties or exchanges, MoonPay’s approach with Sodot emphasizes direct control by institutional clients themselves. This distinction could prove decisive as asset managers weigh operational risks versus convenience when entering digital asset markets.
Ultimately, MoonPay’s acquisition of Sodot marks a strategic shift from retail-focused services toward building core infrastructure for Wall Street-level clients—an evolution likely to influence how other fintechs position themselves in the coming year.
What the market will watch
If MoonPay Institutional, led by former acting CFTC Chair Caroline Pham and built on Sodot’s MPC technology, announces its first major partnership or client among large financial institutions following the April deal closure, it would immediately signal institutional adoption of MoonPay’s new infrastructure; however, the timing of such announcements remains unclear.