Blockchain infrastructure platform Paxos announced its agreement to acquire Finnish electronic payment company Membrane Finance, enabling its entry into the European Union market.
Stablecoins and Paxos Expansion
With Membrane Finance's licensing agreement with the Finnish Financial Supervisory Authority, Paxos will become a fully licensed EMI in Finland and the EU. According to Paxos' head of strategy, Walter Hessert, stablecoins are becoming increasingly prevalent, and with Membrane, the company plans to extend its reach in the EU.
About Membrane Finance Products
Membrane Finance is the issuer of the EUROe and eUSD stablecoins. The company launched EUROe in February 2023, although it did not see large demand initially. Along with other currencies like Stasis, Circle, Tether, and Celo, Membrane Finance provides euro-pegged tokens.
Regulatory Perspective
The European stablecoin market is regulated under the Markets in Crypto-Assets (MiCA) Regulation. Its stablecoin provisions came into force on July 1. Paxos announced its acquisition of Membrane Finance one day before both USD and euro-pegged stablecoins were issued in compliance with MiCA.
The acquisition of Membrane Finance opens new opportunities for Paxos in the European market, providing it with an EMI license and access to the fast-growing stablecoin sector.
