As Europe nears the crucial enforcement deadline for the Markets in Crypto-Assets Regulation (MiCA) at the year’s end, the cryptocurrency landscape witnesses a significant development. Schuman Financial, a newly established cryptocurrency firm spearheaded by former Binance executives Martin Bruncko and Eduardo Morrison, has introduced a euro-backed stablecoin named EURØP. This stablecoin is pegged 1:1 to the euro, aiming to serve a global audience.
Introduction to EURØP: A Euro-Backed Stablecoin
EURØP is designed to facilitate digital payments, enable on-chain foreign exchange trading, and support tokenized real-world assets. The stablecoin is fully backed by cash and cash equivalents, ensuring its stability and reliability. Initially, EURØP will be available on Ethereum and Polygon networks, with plans for further developments in the pipeline.
Investment and Funding: A Strong Foundation
The launch of EURØP follows Schuman Financial’s successful acquisition of 7 million euros (approximately $7.36 million) in a seed funding round. This round was led by RockawayX and received support from prominent investors such as Lightspeed Faction, Kraken Ventures, and Nexo Ventures, among others. While the firm anticipates EURØP to go live within two weeks, an exact launch date is yet to be announced.
Future Prospects for Euro-Denominated Financial Services
Martin Bruncko, CEO of Schuman Financial, emphasizes the growing importance of the euro in the digital asset landscape. “Today, global euro-denominated financial services account for approximately a third of the financial services market, which is currently dominated by the USD,” Bruncko explained. “As financial services transition to blockchain technology, the euro’s role in the digital asset space is set to expand, with stablecoin payments gaining traction as a burgeoning use case.”
Why Europe? A Strategic Choice
Europe stands as the world’s second-largest financial market and is home to the second most-utilized currency. However, this prominence has yet to be reflected in the stablecoin market. Schuman Financial aims to develop the technology and products necessary to position Europe as a global leader in the on-chain era.
Schuman Financial’s Compliance and Market Strategy
Restricting Access to High-Risk Countries
While targeting a global user base, Schuman Financial will restrict access in certain high-risk countries, including Iran, North Korea, Venezuela, and Russia. The company’s list of high-risk jurisdictions encompasses 107 countries, including major stablecoin markets such as Turkey, El Salvador, South Africa, and the UAE.
Compliance with MiCA Framework
EURØP’s compliance with the MiCA framework was achieved through the acquisition of an e-money token license by Schuman Financial’s subsidiary, Salvus SAS. This strategic move ensures that EURØP operates within the regulatory framework set forth by the European Union.
The First European Company to Acquire a MiCA License
Significantly, Schuman Financial has become the first European company to obtain a stablecoin issuer license in France. This license was granted by the French Autorité de Contrôle Prudentiel et de Résolution (ACPR) under the EU’s MiCA regulations. With this license, the company is authorized to issue e-money tokens pegged to any currency within European markets.
Future Ambitions: Building a Euro-Dominated Web3 Ecosystem
The acquisition of the MiCA license marks a pivotal milestone for Schuman Financial’s growth trajectory. With this regulatory approval, Schuman Financial aims to accelerate its plans to establish a euro-dominated Web3 ecosystem. This ecosystem will offer real-world use cases and facilitate the integration of traditional finance into the blockchain sphere.
