Finnish firm launches fully-backed and regulated Euro stablecoin

Finnish firm launches fully-backed and regulated Euro stablecoin

Enabling near-instant payments at a fraction of cost, the EUROe stablecoin is the first such to be regulated as an electronic money institution across Europe.

On Thursday, Helsinki-based fintech company Membrane Finance launched Europe’s first fully-reserved, EU-regulated stablecoin and payments network.

The euro currency stablecoin has been launched on the ethereum blockchain, where it is 1:1 pegged to the euro. The EUROe stablecoin will enable practically zero cost transactions to be made anywhere in the world.

The problem that the EUROe stablecoin is solving is one that has persisted for decades, in that the traditional financial system requires days to settle payments, which cost too much, and that require the added friction of multiple third parties.

Juha Viitala, CEO and Co-founder of Membrane Finance said of his company’s stablecoin launch:

“Launching a truly regulated EUR-based stablecoin is massive news for both us and the wider European cryptocurrency market and community. We want to bring decentralised finance to the masses and make it as easy as possible for Europeans to use a currency they trust and know. This launch is the result of two years of hard work to build the most robust regulatory-compliant European payment systems that allow you to leverage innovation in decentralised finance and other emerging technologies,”

The attainment of a licence from the FIN-FSA has been key in the progress of Membrane Finance’s EUROe stablecoin, giving it legitimacy in the stablecoin space, and putting it way ahead of the competition in the face of the impending MiCA regulations that are said to form the strictest digital asset framework in the world.

Vitala concluded:

“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. EUROe hopefully brings more regular people to DeFi, who were previously unable to or worried about the volatility of cryptocurrencies,”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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