crypto.news
Paxos is looking to expand its presence in the European Union through a new deal for Finland-licensed e-money platform Membrane Finance.
Paxos, which issues stablecoins such as Pax Dollar, PayPal USD (PYUSD), and Pax Gold (PAXG), disclosed the potential deal in an announcement on Nov. 19. According to the update, acquiring Membrane Finance will support Paxos’ expansion efforts in the EU.
The acquisition of Membrane Finance, an electronic money institution licensed in Finland, is seen as key to Paxos’ issuance of stablecoins and tokenized assets that comply with the EU’s Markets in Crypto-Assets regulations. Paxos, which recently unveiled the yield-bearing regulated U.S. dollar-backed stablecoin Lift Dollar, plans to leverage Membrane Finance to bring its regulated products to European customers.
Commenting on the deal, Paxos head of strategy Walter Hessert stated:
“Stablecoins offer a global solution to challenges that countless people and companies feel when it comes to 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 to terms for the acquisition, which is now subject to regulatory approval. Meanwhile, the Markets in Crypto-Assets regulations are set to take effect across the EU on December 30, 2024.
Paxos has already secured regulatory approval from authorities such as the New York State Department of Financial Services, the Monetary Authority of Singapore, and Abu Dhabi Global Market’s Financial Regulatory Services Authority.
The company has raised over $540 million in capital from venture capital firms, including Founders Fund, Oak HC/FT, Declaration Partners, and PayPal Ventures.