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Paxos, a well-known stablecoin issuer, is setting its sights on acquiring Membrane Finance. This move aims to strengthen its market presence in the European Union.
If regulators give the green light to Paxos’ acquisition of Membrane Finance, a regulated electronic money institution based in Finland, Paxos will gain access to the entire E.U. trading bloc.
The deal will allow Paxos to become a fully licensed Electronic Money Institution (EMI) in the European Union, provided local regulators approve it.
In a recent press release, the company stated, “This acquisition will enable Paxos to broaden its globally regulated platform to serve European customers in a secure and compliant manner.”
Walter Hessert, Paxos’ Head of Strategy, pointed out that stablecoins are quickly becoming an “everyday” consumer product. He added, “With Membrane, we expect to extend our reach to EU customers eager to leverage stablecoins.”
Membrane Finance is recognized for issuing the EURe stablecoin, which is based on Ethereum and pegged to the euro. When it launched in 2023, Membrane described the token as “Europe’s first and only E.U.-regulated full-reserve stablecoin and payment network.”
Paxos operates as a regulated blockchain company in the U.S. It provides crypto brokerage and stablecoin management services. Notably, it has assisted major companies like Binance and PayPal in launching their own branded stablecoins.
This acquisition comes just five months after the E.U. implemented its comprehensive Markets in Crypto Asset regulations for stablecoins. These regulations allow issuers to register and enter the trading bloc. They also require issuers to maintain up to 60% of their stablecoin reserves in banks.