As a seasoned crypto investor with a knack for spotting promising opportunities, I find the acquisition of Membrane Finance by Paxos to be a shrewd move. Having closely followed the regulatory landscape and the stablecoin market, it’s clear that this deal will give Paxos an entry into the lucrative European Union market, which is eagerly embracing digital assets.
In simpler terms, the blockchain infrastructure company Paxos has reached an agreement to purchase Membrane Finance, a financial institution based in Finland. Once approved by the relevant authorities, this deal will grant Paxos access to the European Union market.
A stablecoin issuer with a desirable license
Obtaining Membrane Finance will grant Paxos the status of a fully licensed Electronic Money Institution (EMI) not just in Finland, but also across the EU. This is due to Membrane Finance holding a license from the Finnish Financial Supervisory Authority, which is recognized in 30 European countries. In a statement, Walter Hessert, Paxos’ head of strategy, expressed:
“Stablecoins are becoming increasingly more prevalent throughout the market as more use cases emerge for everyday users. […] With Membrane, we expect to extend our reach to EU customers looking to benefit from stablecoins.”
Membrane Finance serves as the originator of EUROe and eUSD digital currencies, debuting the EUROe in February 2023, initially without significant immediate interest. Additionally, Stasis, Circle, Tether, and Celo are also responsible for issuing euro-linked stablecoins.
Other digital assets also carry the eUSD label, but Membrane Finance’s eUSD tends to be less frequently used compared to others.
Paxos had dollar-pegged and gold tokens, but no euro coin
As a crypto investor, I’m excited to share that Paxos, the entity behind the stablecoin Pax Dollar (USDP), operates under the watchful eye of the New York State Department of Financial Services. Recently, Paxos International has introduced another yield-bearing stablecoin, the Lift Dollar (USDL), which falls under the regulatory umbrella of Abu Dhabi Global Market. More recently, in November, Paxos Singapore, in collaboration with DBS Bank and with approval from the Singapore Monetary Authority, began issuing the Global Dollar (USDG). This just goes to show that Paxos is expanding its stablecoin offerings across various jurisdictions.
In November, a group made up of cryptocurrency and conventional financial entities such as Robinhood, Galaxy Digital, Kraken, and Paxos came together with the aim of speeding up and incentivizing global use of stablecoins like USDG.
Paxos also issues a cryptocurrency (PAXG) backed by gold it holds in reserve.
The European market for stablecoins is governed by the Markets in Crypto-Assets Regulation (MiCA). On July 1st, this regulation was officially enforced. Just one day prior to Paxos’ Membrane Finance acquisition announcement, Quantoz – a Dutch fintech company – issued MiCA-compliant US dollar-backed (USDQ) and euro-pegged (EURQ) stablecoins. These stablecoins are supported by Tether, Kraken, and Fabric Ventures, and have been approved by the Dutch central bank.
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2024-11-19 23:05