Elrond (EGLD), the steadily growing crypto startup, has received approval to purchase the electronic money institution Capital Financial Services, which operates under the brand name Twispay.
In fact, it was the Romanian Central Bank that gave its approval for the acquisition that had been looming since last October.
“It’s official : Elrond Network has acquired Twispay !Lucian Todea on Twitter
The approval from the Romanian Central Bank officially seals the deal and opens the door to stablecoin issuance, crypto currency debit cards and more.”
Although its native EGLD token currently trades for around $140, almost 75% cheaper than its ATH, the Elrond ecosystem is constantly working on its expansion. Whether it’s through aggressive marketing, a Maiar wallet and exciting interest rates.
The acquisition of the financial institution Twispay represents an opportunity for Elrond to enter the real economy legally.
As Capital Financial Services is a member of the Mastercard and Visa networks for the issuance and acquisition of payment cards, this recent acquisition could allow Elrond to provide a number of payment services. Twispay is also licensed to issue e-money, which is a key point in this acquisition.
BREAKING: The Romanian Central Bank approves the acquisition of e-money institution Twispay by Elrond.— Beniamin Mincu 🔥🌓 (@beniaminmincu) March 10, 2022
*This landmark decision puts @ElrondNetwork in a strategic position for European digital finance, paving the way for crypto debit cards & stablecoins.*https://t.co/KeC5HsBPWx
Electronic money is broadly defined as an electronic store of monetary value used to make payments to entities other than the issuer of the electronic money. As a standardized means of payment, it is regulated by central banks.
In accordance with European rules, this license will allow Elrond to offer e-money services throughout the European Union. And as the European Commission’s recent proposal through MiCA implied, institutions with an e-money license will be able to issue stablecoins.
This possibility is of great interest to Elrond, but one can also imagine that the crypto startup will not stop there and go explore the world of crypto debit cards as well as the benefits of DeFi and Web 3 globally.
Interestingly, this acquisition comes quickly after the acquisition of crypto payments service Utrust in January 2022.
Financial details of the acquisition have, as of yet, not been disclosed.