Membrane Finance, a Finnish fintech firm, has launched its EUROe full-reserve stablecoin and payment network. The stablecoin, which is pegged one-to-one against the euro, is designed to address the current limitations of the traditional global payment system, which facilitates around $240 trillion in transactions every year.
Unlike other cryptocurrencies, stablecoins often maintain a steady and constant value as they are typically pegged to fiat currency or precious metals. EUROe is unique in that it is transactable on the Ethereum blockchain, allowing for near-instant and near-zero cost payments around the world. The launch of EUROe offers individuals, businesses, and governments a solution to the complexities and risks of converting and paying in volatile cryptocurrencies.
EUROe is one of the first Euro-pegged stablecoins to receive an electronic money institution (EMI) license from the Finnish Financial Supervisory Authority (FIN-FSA). The approval and license from FIN-FSA will ensure compliance with the upcoming European MiCA legislation, which is expected to be the strictest regulatory framework for digital assets ever.
Every EUROe transaction happens on-chain through the Ethereum blockchain, providing a complete and accurate record of asset and transaction movements. The launch of EUROe also allows users to implement the stablecoin in smart contracts and transact on Ethereum, making the payment process far more efficient and with fewer intermediaries.
Membrane Finance’s recent €2 million funding from Finnish seed-stage venture capital firm Maki.vc will be used to develop its tokenisation platform and bridging technology, allowing users to make cross-chain transfers of EUROe without holding the native gas asset. The company hopes that the launch of EUROe will bring more people to decentralized finance (DeFi) who were previously unable or worried about the volatility of cryptocurrencies.
“EUROe hopefully brings more regular people to decentralized finance (DeFi), who were previously unable to or worried about the volatility of cryptocurrencies,” said Juha Viitala, founder of Membrane Finance. “Stablecoins are an essential part of the transition towards blockchain-based money infrastructure, and Europeans deserve to have a full-reserve euro stablecoin from the EU and regulated by an EU-based financial authority.”
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