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Membrane Finance launches a regulated Euro stablecoin

Monday 6 February 2023 09:40 CET | News

Finland-based fintech company Membrane Finance has launched a fully reserved, EU-regulated stablecoin and payments network. 

 

The EUROe stablecoin represents the first product of its kind in Europe, and it was launched on the Ethereum blockchain, where it is 1:1 pegged to the euro. One of the most important characteristics of this stablecoin is that it was designed to solve the issue of costly and time-consuming payments settlements. 

The creators of EUROe hope that it will support near-instant, close to zero-cost transactions anywhere in the world. According to Membrane Finance representatives cited by cryptodaily.co.uk, this regulated EUR-based stablecoin aims to bring decentralised finance to the masses by building trust with users who have previously been discouraged by crypto volatility. 

Membrane Finance has worked on EUROe for two years, and it has obtained a licence from the FIN-FSA in order to ensure its legitimacy in the stablecoin segment. The licence will also help the company to remain compliant with upcoming MiCA regulations, which are expected to set the groundwork for the world’s strictest digital asset framework.

 

Finland-based fintech company Membrane Finance has launched a fully reserved, EU-regulated stablecoin and payments network.

 

Other recent stablecoin launches

In January 2023, the National Australia Bank (NAB) has become the second Australian bank to create a stablecoin by launching AUDN on the Ethereum and Algorand blockchains. NAB representatives revealed that one of the main uses of AUDN would be to allow its customers to settle transactions on blockchain technology in real-time using Australian dollars. Other potential uses for AUDN include repurchase agreements, overseas money transfers, and carbon credit trading. 

As mentioned in The Paypers Crypto Payments and Web 3.0 for Banks, Merchants, and PSPs report, stablecoins are known for their resistance to volatility, which means that users aren't likely to experience any significant price changes when interacting with them. The prices of stablecoins are tied to a reserve asset such as the USD or gold. For example, BUSD, USD Coin (USDC), and Tether (USDT) are all backed on a 1:1 basis with the USD. 

In the same month, Spain-based digital payments fintech MONEI has received permission from the Bank of Spain to issue its own digital euro in a sandbox.  Supervised by the Bank of Spain’s financial sandbox, EURM is part of the Bank of Spain's Controlled Testing Space. 

This stablecoin was designed to facilitate Europe-wide sending of euros and online payments by creating a token using Ethereum and Polygon Blockchain technology. Each token will represent one physical euro, the total of which will be held in two safekeeping accounts at Spanish financial institutions such as BBVA and Caixabank. 


Source: Link


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Keywords: stablecoin, cryptocurrency, product launch, digital euro, fintech
Categories: DeFi & Crypto & Web3
Companies: Membrane Finance
Countries: Finland
This article is part of category

DeFi & Crypto & Web3

Membrane Finance

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