Paxos to expand Euro presence through acquisition of Membrane Finance

As a seasoned crypto investor with a knack for spotting promising opportunities, I find Paxos’ potential acquisition of Membrane Finance to be a strategic move that could significantly boost its presence in Europe. Having closely followed the regulatory landscape and industry trends, it is evident that Paxos is positioning itself to meet the demands of the EU’s evolving crypto market, especially with the upcoming Markets in Crypto-Assets regulations.


Paxos aims to boost its influence within the European Union by establishing a partnership for an e-money platform licensed in Finland, known as Membrane Finance.

Paxos, a company known for issuing stablecoins like the Pax Dollar, PayPal USD (PYUSD), and Pax Gold (PAXG), recently announced a potential deal on November 19th. As per the latest update, this acquisition of Membrane Finance is intended to bolster Paxos’ growth initiatives within the European Union.

Acquiring Membrane Finance, a Finnish-licensed electronic money institution, is considered crucial for Paxos’ ability to issue compliant stablecoins and tokenized assets under the EU’s Crypto-Assets Market regulations. Paxos, having recently introduced the yield-bearing regulated US dollar-backed stablecoin known as Lift Dollar, aims to utilize Membrane Finance to offer its regulated products to customers in Europe.

Commenting on the deal, Paxos head of strategy Walter Hessert stated:

As a financial analyst, I’m excited about the potential of stablecoins as a universal remedy to the problems many individuals and businesses face in terms of monetary transactions and payments on a global scale. In particular, with Membrane, we anticipate broadening our service to European customers who seek the advantages that stablecoins provide.

The deal between Paxos and Membrane Finance has been outlined, pending regulatory consent. Simultaneously, the European Union’s Markets in Crypto-Assets rules will commence on December 30, 2024.

Paxos has received approval from financial regulators like the New York State Department of Finance, the Monetary Authority of Singapore, and the Financial Regulatory Services Authority in Abu Dhabi, ensuring they meet all necessary regulations.

The business has secured more than half a billion dollars in funding from various venture capital firms such as Founders Fund, Oak HC/FT, Declaration Partners, and PayPal Ventures.

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2024-11-19 18:52