Paxos, one of the global blockchain infrastructure platforms that has issued stablecoins like Pax Dollar (USDP), PayPal USD (PYUSD), and Pax Gold (PAXG), has entered into the acquisition of Membrane Finance, a Finland-licensed e-money institution. It is the latest in Paxos’ efforts to consolidate its base within the European Union market.
On November 19, Paxos announced that the acquisition would be central to positioning the business for EU’s Markets in Crypto-Assets (MiCA), which will come into force on the 30th of December, 2024. Being already licensed in Finland, Membrane Finance can be Paxos’ counterpart to issue MiCA-compliant stablecoins and tokenized assets in Europe.
Membrane Finance aims to allow Paxos to bring regulated products to its European customer base. A recent example of such a product it has launched is the Lift Dollar, a regulated yield-bearing U.S. dollar-backed stablecoin.
Walter Hessert, Paxos’ head of strategy, commented on the acquisition:
” This partnership is a significant step along our path aimed at introducing regulated Blockchain-based financial services to the wider global audience.” Membrane Finance gives us a good start to overcome many problems in Europe’s regulation and bring proper products that the market demands.”
The deal is still pending regulator approval, but it also depicts Paxos’s concern for fulfilling the regulatory standards of most significant international authorities. As noted above, Paxos has already been issued permits by the New York State Department of Financial Services, the Monetary Authority of Singapore, and Abu Dhabi Global Market’s Financial Regulatory Services Authority.
Paxos Secures $540M to Lead EU Blockchain Expansion
Paxos has received more than $540 million in funding from well-known venture capital firms such as Founders Fund, Oak HC/FT, Declaration Partners, and PayPal Ventures. These investments help it fund its aggressive expansion agenda, which includes expanding to a new continent, Europe.
As the EU prepares to enforce the MiCA regulations, Paxos is already uniquely placed to responsibly offer a variety of blockchain-based financial solutions within the region. The acquisition of Membrane Finance means not only a reaction to Europe as such but also a striving for an actively regulated adaptation to the changes in Europe’s environment while further enhancing the company’s presence in the European market.
As Paxos establishes its position on the global market, this step proves that the company unites the efforts of blockchain technology and compliance with legislation to anticipate what will start the integration of the financial sector.
This news is republished from another source. You can check the original article here
