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This strategic move is aimed at accelerating Paxos’ commitment to compliant financial products and success of its stablecoins.
USD-Backed Stablecoins in Europe
Paxos, a regulated financial institution and provider of tokenized products has announced an agreement in principle to acquire Membrane Finance, a blockchain infrastructure company, subject to regulatory approval.
With this acquisition, Paxos is looking to ensure its USD-backed stablecoins remain compliant with the new Markets in Crypto-Assets (MiCA) regulations in the European Union.
MiCA regulations impose stringent requirements on stablecoin issuers, including capital adequacy, reserve transparency, and operational resilience. By acquiring Membrane Finance, Paxos specifically plans to align its tokenisation technologies and asset portfolio with Markets in Crypto Asset (MiCA) regulations.
Membrane Finance is a Finnish-licensed Electronic Money Institution (EMI) and Paxos will have full EMI licenses in Finland and the EU after the acquisition is finalised. In addition, Paxos will be looking to enhance the scalability and security of its stablecoin platform through Membrane’s blockchain infrastructure.
“Stablecoins offer a global solution to challenges that countless people and companies feel when it comes to money movement and payments,” said Walter Hessert, Head of Strategy at Paxos. “Stablecoins are becoming increasingly more prevalent throughout the market as more use cases emerge for everyday users. The Paxos platform offers the safest, most compliant stablecoins and stablecoin infrastructure globally. With Membrane, we expect to extend our reach to EU customers looking to benefit from stablecoins.”
This strategic move aims to amplify Paxos’ commitment to providing secure, reliable, and compliant financial products. By combining its strong regulatory foundation with Membrane Finance’s innovative technology, Paxos intends to position itself as a leading player in the global digital asset market.