MoonPay acquires Israeli startup Sodot in a $100M all-stock deal to build institutional crypto security services, custody, and infrastructure.
MoonPay Inc. has acquired Israeli crypto security startup Sodot in a major expansion move. The acquisition is valued at around $100 million in a stock-for-stock deal. As a result, MoonPay is quickly expanding its institutional crypto business.
MoonPay Launches Institutional Crypto Division
The move is in line with MoonPay’s intention to establish a new institutional unit. This division will focus on large financial firms moving into cryptocurrency. In doing so, the company will better integrate conventional finance with blockchain networks.
Bloomberg reports the transaction is a milestone for MoonPay. The valuation was confirmed by sources close to the deal. But the companies have not released detailed financials.
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MoonPay Institutional is for banks, asset managers and fintech companies. It will provide trading, payments, tokenized assets and stablecoin issuance. So, it will provide a broad range of crypto financial services.
Moreover, the unit will also provide wallet and custody services. These are essential for safe institutional adoption of digital assets. As a result, security and compliance will be important.
Caroline D. Pham will head the new division. Pham was appointed Chief Legal Officer and Chief Administrative Officer at MoonPay in December. She was the acting chairman of the Commodity Futures Trading Commission in 2025.
Sodot Built Security for Institutional Crypto Era
Sodot was established three years ago to develop key management systems. It set out to build a secure infrastructure for managing crypto assets. So, it had an eye on increasing institutional interest.
According to the founders, the crypto space was evolving rapidly. Banks and asset managers were getting ready to enter the market. This meant a growing need for secure infrastructure.
Sodot prioritised high levels of performance and security. The team adopted a “no compromise” approach to development. Therefore, reliability and operational control became central design principles.
The startup developed its system for today’s complex crypto operations. Nowadays, institutions may use several exchanges and liquidity platforms. As a result, they have numerous keys and passwords.
This posed a significant infrastructure problem for digital assets. Automated systems need access to keys. So, security breaches can create significant risks.
MoonPay Expands Into Institutional Crypto Market
MoonPay said the deal is part of its long-term plans. It aims to cater to both retail and institutional investors. So, it is moving beyond payments.
MoonPay acquires cutting-edge security from Sodot. This enhances custody and key management. As a result, the company can serve institutional clients.
Crypto adoption by institutions has grown over the years. Asset managers and banks are now experimenting with blockchain. So, infrastructure providers are in a rush to catch up.
MoonPay Institutional will bridge traditional and digital assets. It will provide access to tokenized securities and stablecoins. It may also provide trading and settlement.
The $100 million all-stock deal also indicates alignment. Sodot shareholders will receive equity, rather than cash. So, both firms have an interest in future growth.
MoonPay’s decision is part of a trend in the cryptocurrency sector. Firms are moving from retail to institutional. Hence, competition between infrastructure companies is growing.
In summary, the deal is a significant milestone for MoonPay. It offers payment, custody and security services. So, it is emerging as an institutional crypto gateway.
