Catenaa, Saturday, November 30, 2024 – Stablecoin issuer Paxos has acquired Membrane Finance, a Finnish e-money institution and issuer of the EURe stablecoin. The acquisition provides Paxos with a licensed e-money institution (EMI) status, offering the company access to all EU member states, pending regulatory approval.
Paxos, already regulated in New York, Abu Dhabi, and Singapore, continues to expand its global footprint.
Under the European Union’s MiCA (Markets in Crypto-Assets) regulations, registration in one member state allows for operations across the EU. This regulatory framework is designed to streamline crypto and stablecoin operations across Europe.
Paxos, which issues the PayPal stablecoin (PYUSD) and its own Paxos Dollar (USDP), is positioning itself as a key player in the global stablecoin market.
The company also operates a yield-bearing stablecoin through its UAE affiliate and recently launched the Global Dollar Network in Singapore, which shares interest revenues with distribution partners.
Paxos emphasized the growing importance of stablecoins in global payments. It says stablecoins offer a global solution to challenges that countless people and companies feel when it comes to money movement and payments.
The acquisition also positions Paxos to compete with other stablecoin providers in Europe, such as Circle, which has opted to register as an EMI in France under MiCA. However, some stablecoin issuers, like Tether, have avoided EU regulations, with Tether choosing to remain offshore to avoid stringent reserve requirements.
