Paxos to expand Euro presence through acquisition of Membrane Finance

Paxos plans to expand its presence in the European Union through a new deal for Finnish licensed e-money platform Membrane Finance.

Paxos, which issues stablecoins such as Pax Dollar, PayPal USD (PYUSD), and Pax Gold (PAXG), announced the potential deal in an announcement on Nov. 19. According to the update, the acquisition of Membrane Finance will support Paxos’ growth efforts. AB.

The acquisition of Membrane Finance, a licensed electronic money institution in Finland, is seen as key to Paxos’ issuance of stablecoins and tokenized assets that comply with the EU’s Crypto Asset Markets regulations. Paxos, which recently announced its yield-generating, regulated US dollar-backed stablecoin Lift Dollar, plans to leverage Membrane Finance to offer its regulated products to European customers.

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

“Stablecoins offer a global solution to the challenges faced by countless individuals and companies when it comes to money movement and payments… With Membrane, we hope to expand our reach to EU customers looking to leverage stablecoins.”

Paxos and Membrane Finance have agreed to terms of the acquisition, which is currently subject to regulatory approval. Meanwhile, Crypto Asset Markets regulations will come into force across the EU on 30 December 2024.

Paxos has already received regulatory approval from authorities such as the New York State Department of Financial Services, the Monetary Authority of Singapore and the Financial Regulatory Services Authority of Abu Dhabi Global Market.

The company has raised over $540 million in capital from venture capital firms, including Founders Fund, Oak HC/FT, Declaration Partners and PayPal Ventures.