An internationally headquartered digital asset brokerage with established operations outside the United States expanded its presence into the U.S. market as a registered Money Services Business (MSB). As U.S. transaction volumes, customer balances, and regulatory exposure increased, the company required structured financial and compliance support to meet U.S. reporting expectations and prepare for state-level Money Transmitter License (MTL) requirements.
Challenges
As the client scaled its U.S. operations, several challenges emerged:
- Rapid growth in U.S. transaction volume and customer balances increased regulatory scrutiny.
- MSB Call Reports required precise classification of assets, liabilities, and money received for transmission.
- Financial reporting needed to bridge differences between international operating practices and U.S. regulatory expectations.
- GAAP financial statements needed to align with MSB reporting definitions.
- Leadership lacked a structured framework to assess MTL readiness across finance, controls, and documentation.
- Finance, compliance, and operations expanded simultaneously, increasing the risk of misalignment.
Without a coordinated approach, the client faced heightened reporting risk and operational inefficiencies during U.S. expansion.
Our Approach
Ridgeway Financial Services expert supported the client across MSB financial reporting and MTL readiness, integrating finance, compliance, and executive-level oversight.
MSB Financial Reporting
- Supported preparation and review of MSB Call Report financial data.
- Aligned GAAP financial statements with MSB reporting categories.
- Ensured consistent classification of customer funds, custodial balances, and transmission-related liabilities.
- Provided ongoing support as U.S. balances and transaction activity scaled.
MTL Readiness
- Evaluated financial and operational readiness for state-level MTL requirements.
- Identified gaps related to financial reporting, capital structure, internal controls, and documentation.
- Supported prioritization and execution of remediation initiatives.
- Helped management build a clear roadmap for licensing readiness.
Outcomes
With RFS’s support, the client achieved:
- Accurate and consistent U.S. MSB regulatory financial reporting.
- Clear linkage between customer assets and related liabilities.
- Strong alignment between financial statements and regulatory expectations.
- A defined MTL readiness posture with prioritized next steps.
- Improved coordination between international operations and U.S.-based finance and compliance teams.
- Reduced regulatory and reporting risk as U.S. operations scaled.
Why This Case Matters
International fintech and crypto companies entering the U.S. face materially different regulatory and financial reporting expectations. This case demonstrates how early alignment of MSB reporting and MTL readiness can:
- Prevent costly remediation later.
- Reduce regulatory and audit friction.
- Accelerate compliant growth in the U.S. market.
- Provide leadership with clarity across cross-border operations.
Services Provided
- MSB financial reporting and regulatory support
- U.S. GAAP accounting and close support
- MTL readiness and licensing preparation
- Technical accounting for customer funds and custodial assets
- Internal controls and compliance support
Interested in Similar Support?
Ridgeway Financial Services works with international fintech, payments, and digital asset companies expanding into the U.S. to support MSB reporting, MTL readiness, audit preparation, and financial leadership.
If your business is navigating U.S. regulatory growth or licensing requirements, RidgewayFS can help you move forward with confidence.