Paxos to Buy Finland’s Membrane Finance to gain EU access (CoinDesk)
Stablecoin issuer Paxos will gain access to the European Union (EU), by agreeing to buy Finland-based electronic money institution (EMI) Membrane Finance. “The acquisition is subject to regulatory approval [but] upon completion of the acquisition, Paxos will be a fully licensed EMI in Finland and the EU.” Membrane’s digital assets are regulated by Finland’s Fin-FSA and fully compliant with the EU’s Markets in Crypto-Assets Regulation (MiCA). This follows Tether’s recent investment in Quantoz Payments to support the latter’s launch of its EURQ and USDQ MiCA-compliant stablecoins. In July 2024, USDC and EURC issuer Circle claimed that it became MiCA compliant when it attained an EMI license from the French Autorité de Contrôle Prudentiel et de Résolution (ACPR). [Read more at Paxos]
Deutsche Bank, UBS settle tokenized deposit payments in Bundesbank Trigger solution experiment (Ledger Insights)
UBS and Deutsche Bank have reportedly simulated tokenized deposit payments between the banks as part of the European Central Bank (ECB) wholesale distributed ledger technology (DLT) settlement trials. The Bundesbank’s Trigger solution, that enables blockchain based systems to link to the Trigger Chain, which in turn initiates a payment on the Target2 payment system in central bank money, was used. Adhara, the technology partner of Fnality, provided the orchestration layer that ensures that all the separate settlement legs of the transaction happen atomically. One of the two trails simulated transactions between Deutsche Bank London and UBS in Switzerland involving pounds and Swiss francs, which were settled using euros. [Read more at Ledger Insights]
Brazil’s central bank selects consortium to support Drex trade finance use case experiments (Chainlink)
Banco Central do Brasil has reportedly selected Banco Inter alongside Microsoft Brazil, 7COMm and Chainlink to build a trade finance solution as part of the 2nd phase of Brazil’s DREX central bank digital currency (CBDC) experimentation. The solution leverages blockchain technology and oracles to automate supply chain management and improve trade finance processes. The goal of the pilot is to demonstrate the automated settlement of agricultural commodity transactions across borders, across platforms, and via different currencies. [Read more at PR Newswire]
The Swedish retail payment infrastructure needs to be modernized (Sveriges Riksbank)
Sveriges Riksbank called for the modernization of its retail payments infrastructure and the creation of processes for secure, efficient and accessible retail payments. More specifically, the central bank argued that the infrastructure for clearing (compilation and processing of payment orders) and settlement (finalization) of retail payments in Swedish kronor needs modernization. It presented its view of the way forward over the next five years. Interestingly, no mention was made of an e-kronor retail central bank digital currency (CBDC). [Read more at the Riksbank]
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And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
