Paxos has announced its agreement to acquire Membrane Finance, a Finnish Electronic Money Institution (EMI). Pending regulatory approval, the move will grant Paxos access to the European Union’s financial ecosystem, enabling it to operate as a fully licensed EMI across 30 European countries under Membrane Finance’s Finnish Financial Supervisory Authority licence.
Walter Hessert, Paxos’ head of strategy, emphasised the growing importance of stablecoins in the financial ecosystem, stating:
“Stablecoins are becoming increasingly more prevalent throughout the market as more use cases emerge for everyday users. […] With Membrane, we expect to extend our reach to EU customers looking to benefit from stablecoins.”
Membrane Finance: A Gateway to the European Stablecoin Market
Membrane Finance is best known as the issuer of the EUROe and eUSD stablecoins. The EUROe, launched in February 2023, has yet to see significant traction but adds to the diverse offerings of euro-pegged stablecoins alongside competitors such as Circle, Tether, Stasis, and Celo.
Despite its low activity compared to other eUSD tokens, Membrane Finance’s portfolio strengthens Paxos’ foothold in the European stablecoin market, regulated under the EU’s Markets in Crypto-Assets (MiCA) framework. MiCA’s stablecoin provisions took effect on July 1, creating a standardised regulatory environment for issuers.
Paxos’ Expanding Global Stablecoin Footprint
Paxos has been steadily increasing its presence in the global stablecoin market. It issues the Pax Dollar (USDP) under the regulation of the New York State Department of Financial Services and launched the Lift Dollar (USDL), a yield-bearing stablecoin, in Abu Dhabi earlier this year. On November 1, Paxos Singapore debuted the Global Dollar (USDG) in collaboration with DBS Bank, with approval from the Singapore Monetary Authority.
In addition to stablecoins, Paxos also offers PAXG, a cryptocurrency backed by gold reserves.
European Expansion Amid Growing Stablecoin Competition
The acquisition positions Paxos as a direct competitor to recent MiCA-compliant stablecoin issuances, including the USDQ and EURQ tokens launched by Dutch fintech Quantoz. These tokens, backed by Tether, Kraken, and Fabric Ventures, received approval from the Dutch central bank just one day before Paxos announced its Membrane Finance acquisition.
Paxos is also part of a consortium of crypto and traditional finance firms—including Robinhood, Galaxy Digital, and Kraken—formed to accelerate global stablecoin adoption. The group, announced in November, aims to reward stablecoin use with a particular focus on USDG adoption.
With the acquisition of Membrane Finance, Paxos is poised to become a significant player in the European stablecoin market, leveraging its regulatory compliance and diverse offerings to drive adoption and innovation.
