Helsinki-based Membrane Finance, a fintech company, announced on Wednesday, December 7, that it has raised €2M in a Seed round of funding led by Finnish VC Maki Ventures.
The Finnish company also announced the approval of its FIN-FSA Electronic Money Institution licence to build the first-ever regulated EUR-based stablecoin in the European Union – EUROe.
“We’ve been working towards this very goal for the last 18 months. Getting an EU-level license and the opportunity to build a truly regulated EUR-based stable coin finally is massive news for both us and the wider European cryptocurrency market and community,” explains Juha Viitala, the CEO and co-founder of Membrane Finance.
The company says it will use the funds to develop and bring EUROe to the market.
EUROe: What you need to know
EUROe is a stablecoin and payment network that will enable near-instant payments globally for a fraction of the cost of any traditional alternative, claims the Finnish company.
The Finnish company pegs EUROe as an alternative to the fiat Euro in a 1:1 ratio, similar to the USD-stablecoins, and can be used in transactions on all major blockchains.
For users, one EUROe is always one Euro, says the company.
To create revenue, Membrane Finance says it 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.
The company is planning to launch the stable currency in early 2023.
“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 euro 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,” says Viitala. “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.”
Membrane Finance: What you need to know
Founded in 2021 in Finland, Membrane Finance is a financial technology company specialising in the development of financial software and services that aims to link traditional financial infrastructure and blockchain-based services.
Maki.vc: What you need to know
Maki.vc is an early-stage venture capital firm that partners with deep tech and brand-driven companies that challenge category norms from inception to series A and beyond.
“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,” says Paavo Räisänen, Maki Ventures’ Partner and the lead investor for the round.
