Cryptocurrency payment network MoonPay has acquired Israeli crypto security startup Sodot in an all-stock deal valued at approximately $100 million. The acquisition, finalized this month, marks a strategic move to enhance security and expand into institutional services.
MoonPay plans to use the acquisition to launch MoonPay Institutional, a new division focused on large financial firms. The unit will offer trading tools, tokenized securities, payment services, wallet management, and stablecoin issuance. Sodot's multi-party computation technology will serve as the core security layer for the new business, enabling detailed oversight of digital asset custody and transaction approvals.
Sodot specializes in multi-signature authentication, cold storage management, and real-time threat detection. Its self-hosted multi-party computation systems are designed for institutional clients, allowing firms to control asset transfers and set approval processes under strict governance rules.
The all-stock structure aligns incentives and preserves MoonPay's cash reserves for further acquisitions. MoonPay has expanded beyond retail crypto payments over the past year, acquiring stablecoin platform Iron and crypto checkout firm Helio. The company now supports nearly 30 million customers worldwide and provides infrastructure services to more than 500 companies.
Caroline D. Pham, who joined MoonPay in December as chief legal officer and chief administrative officer, will lead MoonPay Institutional. Pham previously served as acting chair of the Commodity Futures Trading Commission in 2025. She noted that the sector has reached a turning point due to clearer regulations, including US stablecoin legislation passed last year, and improved blockchain reliability.
Industry analysts view the acquisition as a logical step toward building a comprehensive crypto financial services platform. However, integration challenges may arise as MoonPay merges corporate cultures and technology stacks. Competitors like Coinbase Commerce and BitPay are likely to respond with their own security enhancements, potentially triggering consolidation in the crypto security sector.
