Paxos to acquire Membrane Finance to expand into EU market

Paxos, a prominent stablecoin issuer, has reached an agreement to acquire Membrane Finance, a Finland-based electronic money institution, in a strategic move to gain access to the European Union.

This acquisition comes about five months after the EU’s stablecoin regulations, part of the broader Markets in Crypto Asset (MiCA) framework, were implemented.

Crypto firms are increasingly working to align with MiCA rules, with stablecoin regulations having taken effect in late June, and the full regulation set to be enforced by the end of this year.

Notable industry moves include Coinbase’s recent announcement that it will remove non-compliant stablecoin issuers from its platform, and Gemini’s entry into the French market.

Once the acquisition is finalized, Paxos will become a fully licensed Electronic Money Institution (EMI) in Finland and across the EU.

The company has stated that it plans to ensure its asset portfolio and tokenization solutions comply with MiCA regulations. The terms of the deal, which are still awaiting regulatory approval, have not been disclosed.

In other developments, Paxos recently launched USDG in partnership with DBS Bank, with regulatory approval in Singapore. USDG is supported by US dollar deposits, short-duration US government securities, and cash equivalents, allowing for 1:1 redemption.

The Monetary Authority of Singapore (MAS) approved USDG in July, paving the way for Paxos Digital Singapore to offer the stablecoin.

Additionally, on October 16, Paxos introduced the yield-bearing stablecoin, wrapped Lift Dollar (wUSDL), on the Injective platform.

Pegged 1:1 to the US dollar, Lift Dollar provides users with daily yields, derived from reserves like short-term US Treasury bills and cash equivalents.

Paxos International, regulated by the United Arab Emirates, also launched Lift Dollar (USDL) in June, offering users daily dividend yields in their wallets.

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