As the European Union approaches the final enforcement deadline for the Markets in Crypto-Assets Regulation (MiCA) at the close of the year, a new player in the cryptocurrency landscape, Schuman Financial, has introduced an innovative euro-backed stablecoin known as EURØP. Founded by former Binance executives, including Martin Bruncko and Eduardo Morrison, Schuman Financial aims to expand the accessibility and functionality of the euro in the digital world.
The EURØP Stablecoin: Bridging Traditional and Digital Finance
EURØP is pegged 1:1 to the euro, designed to serve a global audience with its primary applications in digital payments, on-chain foreign exchange trading, and tokenized real-world assets. Ensuring stability and trust, the stablecoin is fully backed by cash and cash equivalents. Initially, it will be available on the Ethereum and Polygon networks, with plans for future expansions into other blockchain networks.
Strategic Funding and Future Ambitions
The launch of EURØP follows a successful 7 million euros ($7.36 million) seed funding round led by RockawayX in September, with participation from notable investors like Lightspeed Faction, Kraken Ventures, and Nexo Ventures. Schuman Financial anticipates that EURØP will be operational within two weeks, although an exact launch date remains tentative.
Martin Bruncko, CEO of Schuman Financial, highlighted the significance of this initiative: “Today, the global euro-denominated financial services account for approximately one-third of the financial services market, which is dominated by the USD. As financial services transition on-chain, the euro’s influence in the digital asset space is poised to expand, with growing interest in stablecoin payments signaling the beginning of a new era.”
Why Europe?
Europe is recognized as the second-largest financial market globally and is home to the second most-utilized currency. Yet, this prominence is not mirrored in the stablecoin market. Schuman Financial aims to develop technology and products that position Europe as a leader in the on-chain finance era.
Schuman Financial Restricts High-Risk Countries
While Schuman Financial targets a global audience, it implements stringent measures by restricting access in high-risk countries such as Iran, North Korea, Venezuela, and Russia. The company’s list of high-risk jurisdictions includes 107 countries, encompassing major stablecoin markets like Turkey, El Salvador, South Africa, and the UAE.
EURØP’s compliance with the MiCA framework was secured through the acquisition of an e-money token license by Schuman Financial’s subsidiary, Salvus SAS.
The First European Company To Acquire The License
Significantly, Schuman Financial has become the first European company to obtain a stablecoin issuer license in France, granted by the French Autorité de Contrôle Prudentiel et de Résolution (ACPR) under the EU’s MiCA framework. This license allows the company to issue e-money tokens pegged to any currency within European markets. The MiCA license marks a pivotal milestone for Schuman Financial’s expansion plans, as it endeavors to build a euro-dominated Web3 ecosystem that integrates traditional finance into the blockchain domain.
