MoonPay Secures $200 Million Credit Line from Galaxy Amid Memecoin Surge

MoonPay has secured a $200 million revolving credit line from Galaxy to address urgent liquidity needs. Ivan Soto-Wright, co-founder of the payment service, shared this information with The Block.

The agreement was reached due to challenges that arose during the launch of the meme coin associated with U.S. President Donald Trump. At that time, the company had to urgently raise $160 million amid exceptionally high demand, which coincided with the weekend closure of traditional banks. In this situation, support was provided by Galaxy and Ripple.

“This revolving credit line is designed for short-term access to capital during extreme liquidity crises, similar to what we experienced with TRUMP. It is not intended to take on long-term debt obligations,” explained Soto-Wright.

During the launch of the «presidential» meme token, MoonPay struggled to handle the «massive volumes» as the company’s liquidity was locked in accounts with BlackRock due to the holiday weekend. With the backing of Galaxy and Ripple, the firm managed to cope with the surge and attracted 750,000 new customers.

Soto-Wright noted that following the U.S. presidential elections in November 2024, MoonPay experienced «extraordinary demand» for cryptocurrency.

“Comparing the four months prior to the elections with the four months after, our average daily volumes nearly doubled (+98%),” he reported.

This marks MoonPay’s first credit line deal. Negotiations with Galaxy began several weeks ago, and the final agreement was signed on March 19. While the terms of the deal remain undisclosed, Soto-Wright emphasized that MoonPay is «pleased» with the agreement.

It’s worth noting that in January, the ethics of Trump’s cryptocurrency initiatives caught the attention of Congress, and in February, Public Citizen urged the Department of Justice and the U.S. Office of Government Ethics to launch an investigation into TRUMP due to potential violations of federal corruption laws.