- Paxos has announced its agreement to acquire Finnish Electronic Money Institution (EMI) Membrane Finance
- The acquisition, pending regulatory approval, will grant Paxos a full EMI license in Finland and the European Union
- This move aims to expand Paxos’ regulated platform into the EU and facilitate the issuance of Markets in Crypto Asset (MiCA) compliant stablecoins
Paxos, a leading regulated blockchain and tokenization infrastructure platform, has agreed to acquire Membrane Finance, a Finnish Electronic Money Institution (EMI). Subject to regulatory approval, this acquisition will provide Paxos with a full EMI license in Finland and the European Union, enabling the company to extend its regulated platform into the EU and issue stablecoins compliant with the Markets in Crypto Asset (MiCA) regulations. The agreement is Paxos’ first major move since the Securities and Exchange Commission dropped its investigation into the company in July.
Paxos Achieves European Expansion
Paxos is renowned for issuing trusted USD-backed stablecoins, which are utilized by both retail and institutional users across various markets worldwide. With the integration of Membrane Finance, Paxos plans to expand its portfolio of assets and tokenization solutions to meet MiCA compliance standards. This initiative aims to address the growing demand for stablecoins in the European market, offering a reliable and regulated option for digital transactions.
The acquisition marks a significant step for Paxos in broadening its reach within the European financial landscape. By obtaining an EMI license in Finland, Paxos will be positioned to offer its suite of regulated digital assets and tokenization solutions to European customers, ensuring compliance with the stringent MiCA regulations. This strategic move underscores Paxos’ commitment to providing secure and compliant financial solutions on a global scale.
Hessert Talks Up Stablecoin Potential
Walter Hessert, Head of Strategy at Paxos, emphasized the global applicability of stablecoins in addressing challenges related to money movement and payments:
Stablecoins offer a global solution to challenges that countless people and companies feel when it comes to money movement and payments. Stablecoins are becoming increasingly more prevalent throughout the market as more use cases emerge for everyday users.
Hessert added that the acquisition of Membrane will allow Paxos to “extend our reach to EU customers looking to benefit from stablecoins.” By expanding its regulated platform into the EU, Paxos aims to provide European customers with secure and compliant access to digital assets, fostering innovation and efficiency in the financial sector.
