With a new agreement for Finland-licensed E-money platform Membrane Finance, Paxos hopes to increase its footprint throughout the EU.
In an announcement on November 19, Paxos, the company that generates stablecoins, including Pax Dollar, PayPal USD, and Pax Gold, revealed the possible agreement.
The report states that the acquisition of Membrane Finance will aid Paxos’ EU expansion plans. Paxos’ issue of stablecoins and tokenized assets that adhere to the EU’s Markets in Crypto-Assets laws is said to be largely dependent on its acquisition of Membrane Finance, an electronic money institution licensed in Finland.
In order to introduce its regulated products to European consumers, Paxos intends to use Membrane Finance.
Paxos recently announced Lift Dollar, a yield-bearing regulated stablecoin backed by the US dollar. Walter Hessert, head of strategy at Paxos, commented on the agreement:
Stablecoins offer a global solution to challenges that countless people and companies feel regarding money movement and payments… With Membrane, we expect to extend our reach to EU customers looking to benefit from stablecoins.”
Paxos and Membrane Finance have agreed upon Terms for the acquisition; regulatory approval is currently pending.
On December 30, 2024, the Markets in Crypto-Assets laws are scheduled to go into force throughout the European Union.
Authorities like the Monetary Authority of Singapore, the New York State Department of Financial Services, and the Financial Regulatory Services Authority of Abu Dhabi Global Market have previously granted Paxos regulatory permission.
Venture capital firms such as Founders Fund, Oak HC/FT, Declaration Partners, and PayPal Ventures have contributed more than $540 million to the company’s capital raising.
