MoonPay Secures $200 Million Liquidity Line from Galaxy

MoonPay has obtained a $200 million revolving credit line from Galaxy to address emergency liquidity requests. This was reported by Ivan Soto-Wright, co-founder of the payment service, to The Block.

The deal was struck due to challenges encountered during the launch of the U.S. President Donald Trump memecoin. At that time, the company had to urgently raise $160 million amid exceptionally high demand coinciding with traditional banks’ weekend closures. In that situation, support was provided by Galaxy and Ripple.

“This revolving credit line is designed for short-term access to capital during moments of extreme liquidity needs, as was the case with TRUMP. It is not intended for taking on long-term debt obligations,” explained Soto-Wright.

During the launch of the “presidential” memetoken, MoonPay struggled with “gigantic volumes” as the company’s liquidity was locked in BlackRock accounts due to holiday weekends. With the support of Galaxy and Ripple, the firm managed to cope with the surge and attract 750,000 new clients.

According to Soto-Wright, after the U.S. presidential elections in November 2024, MoonPay faced “incredible demand” for cryptocurrency.

“If you compare the four months before the election with the four months after, our average daily volumes almost doubled (+98%),” he stated.

This is MoonPay’s first credit line deal. Negotiations with Galaxy began several weeks ago, and the final agreement was signed on March 19. The terms of the deal are not disclosed, but Soto-Wright noted that MoonPay is “pleased” with the agreement.

Back in January, the ethics of Trump’s cryptocurrency initiatives caught the attention of Congress, and in February, Public Citizen urged the U.S. Department of Justice and the Office of Government Ethics to investigate TRUMP for potential violations of federal corruption laws.