Paxos Acquires Membrane Finance To Ensure MiCA Compliance For Stablecoins
Paxos, a regulated financial institution known for its tokenized products, has announced an agreement to acquire Membrane Finance, a blockchain infrastructure firm, subject to regulatory approval.
This strategic acquisition is aimed at ensuring Paxos’ USD-backed stablecoins remain compliant with the European Union’s new Markets in Crypto-Assets (MiCA) regulations. MiCA imposes strict requirements on stablecoin issuers, including transparency, capital adequacy, and operational resilience.
Membrane Finance, a Finnish-licensed Electronic Money Institution (EMI), will allow Paxos to hold EMI licenses in both Finland and the broader EU. The acquisition also enhances Paxos’ ability to scale its stablecoin platform, improve security, and integrate Membrane’s advanced blockchain infrastructure. Walter Hessert, Paxos’ Head of Strategy, emphasized that stablecoins are becoming an increasingly important financial tool globally, and the move solidifies Paxos’ commitment to offering secure, compliant, and scalable financial products.
Clever Robot News Desk 20th November 2024
