North Capital operates SEC-registered broker-dealers and an alternative trading system for private securities

MoonPay has agreed to acquire North Capital Investment Technology Inc., a Utah-based company that provides technology and brokerage services for private securities. MoonPay announced the definitive merger agreement on Wednesday. Upon completion, North Capital would become its wholly owned subsidiary of MoonPay.

The acquisition will add North Capital's securities brokerage and investment advisory businesses to MoonPay’s global financial infrastructure platform.

North Capital operates SEC-registered broker-dealers and a trading system

Founded in 1999, North Capital has been into tokenized securities since 2017. In April 2020, the company completed a Financial Industry Regulatory Authority membership approval process for PPEX, while SEC had accepted its Form ATS initial operations report.

North Capital's operating businesses include broker-dealers, an alternative trading system, a transfer agent and an investment adviser, each registered with the U.S. Securities and Exchange Commission. The company supports issuers, professional intermediaries, fund managers and investors with capital raising, asset management, clearing, custody and secondary trading for exempt securities, including tokenized securities.

Its capabilities also include investor-onboarding technology, transaction processing, subscription escrow and secondary trading through PPEX ATS, its alternative trading system. MoonPay says North Capital's platform has supported more than $8.7 billion in primary and secondary transaction volume. PPEX has more than 1,250 approved assets available for secondary-market trading, according to the announcement.

MoonPay did not disclose financial terms for the acquisition. The $8.7 billion figure refers to transaction volume supported by North Capital’s existing platform.

Executives outline aims for combined operations

MoonPay CEO and founder Ivan Soto-Wright says the company is building the regulatory foundation for broader adoption of tokenized real-world assets. He says that adding North Capital's capabilities can help MoonPay connect different parts of the financial system through programmable infrastructure.

North Capital founder and CEO James P. Dowd says the company was founded to bring access, liquidity and transparency to private markets. He further adds that North Capital sees an opportunity to combine the teams and capabilities of both companies while continuing to support its clients and partners.

MoonPay adds North Capital after recent infrastructure deals

Founded in 2019, MoonPay serves more than 35 million customers in 180 countries and more than 1,500 enterprise clients. The company has expanded its infrastructure capabilities through several acquisitions this year.

MoonPay announced the acquisition of key management infrastructure company Sodot on April 29 and Solana-based trading infrastructure platform DFlow on May 5. The Sodot announcement included the launch of MoonPay Institutional, a business for financial institutions, asset managers, trading firms and exchanges.

On May 21, MoonPay launched MoonPay Trade, a platform that lets applications, financial institutions and enterprises access digital assets across more than 200 blockchains and protocols through a single API. The company says the platform is powered by technology from Decent.xyz, a cross-chain routing company it acquired.

Boards approve merger as regulatory approvals remain pending

The boards of directors of both companies unanimously approved the transaction, according to MoonPay. The announcement does not identify the regulators whose approvals are required.

The transaction has not yet closed. Completion remains subject to regulatory approvals and other customary closing conditions, and the companies have not announced a closing date.