‘We need trusted systems that bridge the gap between traditional financial markets and crypto ecosystems’
Finnish fintech Membrane Finance has recently announced their new funding round as well as their newly approved license to build the first-ever regulated EUR-based stablecoin in the European Union. The company is granted the FIN-FSA Electronic Money Institution license – the first in the EU. This makes Membrane’s product, called EUROe, the first regulated EUR-based, full-reserve stablecoin in the EU.
Juha Viitala, the CEO and Co-Founder of Membrane Finance, commented: “We’ve been working towards this very goal for the last 18 months. Getting an EU-level license is massive news for both us and the wider European cryptocurrency market and community.”
EUROe will enable near-instant payments globally for a fraction of the cost of traditional alternatives. The product is excepted to launch in early 2023, and a waitlist is now open.
EUROe is an alternative to the widespread USD-stablecoins, making sure that not all stablecoin investments will only be made in the United States. EUROe takes a fiat Euro and transforms it into a 1:1 pegged digital currency that is transactable on all major blockchains. For users, one EUROe is always one Euro.
To create revenue, Membrane Finance invests a certain percentage of the Fiat reserve in low-risk assets. With favourable interest market development in the EU region, Membrane Finance expects light deposit interest returns.
Viitala added: “We have a strong protectionistic perspective in building EUROe. An EU version must be introduced to the market to compete globally with other currencies. Keeping EUR reserves in the ETA region and preventing reserve cumulation outside the EU is mandatory to keep up with the competition, and EUROe will certainly play a role in this.
“On top of this, we believe that regulation is key in legitimising and helping to bring blockchain innovations safely to broader markets. We want to be a transparent actor in the field – there’s nothing more important than trust when it comes to financial systems.”
In a few years, the upcoming EU MiCa regulation will broadly require compliance from various crypto service providers, including stablecoins, and thus will enable broader cooperation with traditional financial service providers. This is also where Membrane Finance is betting on its success.
Together with announcing the new EUROe stablecoin, Membrane Finance also announces their new seed funding of 2M€ from Maki.vc to introduce their product to the market.
Paavo Räisänen, Maki Ventures’ Partner and the Lead Investor for the round said: “If the recent events in the crypto market have shown us anything, it’s that we need trusted systems that bridge the gap between traditional financial markets and crypto ecosystems.
“Stablecoins are an essential part of the transition towards blockchain-based money infrastructure, and Europeans deserve to have a full-reserve euro stablecoin that is from the EU and regulated by an EU-based financial authority.
“We are excited to support Membrane’s team’s in-depth market and technology understanding and, most importantly, their clear vision of building EUROe.”