Paxos Acquires Membrane Finance to Solidify Its Presence in the European Union (EU)

Paxos, a leading global blockchain infrastructure platform known for issuing stablecoins such as Pax Dollar (USDP), PayPal USD (PYUSD), and Pax Gold (PAXG), has announced its acquisition of Membrane Finance.

Paxos, a leading global blockchain infrastructure platform, has announced its intent to acquire Membrane Finance, a licensed e-money institution in Finland. This acquisition is a strategic move by Paxos to solidify its presence in the European Union (EU) and expand its capacity to offer regulated blockchain-based financial products.

Known for issuing stablecoins such as Pax Dollar (USDP), PayPal USD (PYUSD), and Pax Gold (PAXG), Paxos has already secured licenses from major financial regulators, including 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’s latest venture is driven by the EU’s upcoming Markets in Crypto-Assets (MiCA) regulation, set to take effect on December 30, 2024. Membrane Finance's existing license in Finland positions it as a key player in enabling Paxos to issue MiCA-compliant stablecoins and tokenized assets throughout Europe.

This acquisition is also a response to the growing demand for yield-bearing stablecoins, an innovation introduced by Membrane Finance with the launch of the Lift Dollar, a stablecoin backed by the U.S. dollar and designed to generate yield. Paxos aims to leverage such products to cater to its European clientele with compliant and secure financial solutions.

The acquisition, which is subject to regulatory approval, marks a significant step in Paxos' mission to deliver blockchain-powered financial services to a broader global audience. According to the company, Membrane Finance will help address regulatory challenges in Europe while providing market-driven products tailored to the region’s needs.

Paxos, a company valued at over $2.4 billion, has channeled its recent funding toward expanding its footprint in the European market. With the EU set to implement MiCA regulations, Paxos is uniquely positioned to offer a variety of compliant blockchain-based financial services within the region.

This acquisition is both a proactive adaptation to the evolving regulatory landscape and a move to reinforce Paxos' market presence in Europe, where it has already begun offering its stablecoins and plans to introduce additional products pending regulatory approval.