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Paxos, a leading regulated blockchain and tokenization infrastructure provider, has announced its agreement to acquire Membrane Finance, a Finnish Electronic Money Institution (EMI) licensed by the Finnish Financial Supervisory Authority. The acquisition is subject to regulatory approval and will significantly extend Paxos’ footprint in the European Union.

According to the announcement, once the acquisition is completed, Paxos will be a fully licensed EMI in both Finland and the EU. 

According to the announcement, the latest initiative is part of the company’s broader strategy to expand its regulated platform and offer its suite of services to European customers while also making its stablecoin offerings compliant with the Markets in Crypto Assets (MiCA) regulation, a landmark framework recently adopted by the EU for crypto assets.

Paxos, which already issues trusted USD-backed stablecoins used globally by both retail and institutional users, plans to leverage Membrane Finance’s licensing and infrastructure to better serve European markets in a safe, compliant manner. 

The integration will allow Paxos to issue MiCA-compliant stablecoins and extend its range of tokenization solutions across Europe.

In a statement, Walter Hessert, Head of Strategy at Paxos, emphasized the growing importance of stablecoins in the global financial landscape. 

“Stablecoins offer a global solution to challenges that countless people and companies feel when it comes to money movement and payments. Stablecoins are becoming increasingly more prevalent throughout the market as more use cases emerge for everyday users,” Hessert said. He added, “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.”

With the rise of digital finance in Europe, this strategic move positions Paxos to capitalize on the increasing demand for stablecoins and digital asset services as the continent embraces a more comprehensive regulatory framework for the crypto sector.

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