- Paxos agreed to acquire Membrane Finance.
- The acquisition would allow the company to expand in Europe with official authorization.
- The planned acquisition is subject to regulatory approval.
Stablecoin issuer Paxos announced today its agreement to acquire Membrane Finance, a licensed Electronic Money Institution (EMI) based in Finland.
Founded in 2012, Paxos offers a regulated blockchain infrastructure and tokenization platform licensed by the New York State Department of Financial Services (NYSDFS) to engage in crypto business activity. The company has issued various U.S. dollar-backed stablecoins, including PayPal USD (PYUSD), Pax Dollar (USDP), and Global Dollar (USDG) via its Singaporean subsidiary.
Paxos Eyes the EU Market
According to a press release dated November 9, the planned acquisition of Membrane Finance, subject to regulatory approval, paves the way for Paxos to become a fully licensed EMI in Finland and the greater European Union market.
Sponsored
โThis acquisition will allow Paxos to expand its globally regulated platform to serve European customers in a safe and compliant way. Specifically, Paxos intends to make its portfolio of assets and tokenization solutions compliant with Markets in Crypto Asset (MiCA) regulations,โ the statement read.
Walter Hessert, Head of Strategy at Paxos, noted the acquisition positioned the company to extend its stablecoin reach to the burgeoning European Economic Area market, where Circleโs EURC and Sociรฉtรฉ Gรฉnรฉraleโs EURCV currently dominate with the euro-dominate electronic money token reach with 60% share.
The revelation of Paxosโ agreement to acquire Membrane Finance came a day after Quantoz Payments announced the launch of its MiCA-compliant euro and U.S. dollar-pegged stablecoins with the backing of USDT issuer Tether, Kraken, and web3 venture capital firm Fabric Ventures.
Meanwhile, the European stablecoin market is poised for a shakeup once the MiCA regime goes into effect at the end of the year. The regulations will restrict certain stablecoins, including asset-referenced tokens (ARTs) and foreign currency EMTs.
Read how a tourist recently lost $250K USDT in an extortion case in Thailand:
Tourist Loses 250K USDT in Thailand Extortion Case
Stay updated on Tetherโs development kit for Bitcoin and USDT wallets:
Tether Debuts Developer Toolkit for Bitcoin and USDT Wallets
