TL;DR
- Paxos has announced the acquisition of Membrane Finance, a regulated financial institution in Finland, to expand its operations in Europe.
- The purchase is subject to approval by local authorities and will allow the firm to operate as an electronic money institution (EMI) in the EU.
- Membrane Finance issues the EURe stablecoin, pegged to the euro, and this acquisition will enable Paxos to offer stablecoin solutions in compliance with EU regulations.
Paxos, the renowned stablecoin issuer, continues to expand globally and has just announced the acquisition of Membrane Finance, a regulated financial institution based in Finland.
The acquisition is still awaiting approval from local regulatory authorities. The idea is for Paxos to operate as a fully licensed electronic money institution (EMI) within the European Union. The company aims to offer a globally regulated platform for the issuance and management of stablecoins, ensuring a service that complies with EU regulations.
The Merger of Paxos and Membrane Finance
Membrane Finance is known for issuing the EURe stablecoin, a digital currency pegged to the euro and based on the Ethereum network. Since its launch in 2023, the company has stood out as the first to offer a fully regulated stablecoin in the European Union, holding a privileged position in the European crypto market.
The purpose of this acquisition is to expand Paxos’ presence in Europe, allowing the U.S.-based firm to offer its stablecoin solutions to a much larger market, adapted to the strict requirements of European legislation, such as the MiCA (Markets in Crypto Assets) regulations, which recently came into effect.
Stablecoins Gaining Ground in Everyday Economy
Walter Hessert, head of strategy at Paxos, pointed out that stablecoins are rapidly evolving into products used daily by consumers and businesses. With the inclusion of Membrane, the company will be able to extend its reach to European customers looking to benefit from these assets, ensuring a safe and fully compliant service according to local laws.
The agreement between the two will be crucial in advancing blockchain technology adoption and asset tokenization in the European market, a key aspect for businesses and users seeking stability and compliance in their investments
