London fintech receives green light for stablecoin and e-money services
Merge, a UK-based fintech, has secured authorisation from French regulators to operate as both an electronic money institution (EMI) and a virtual asset service provider (VASP).
The approval allows Merge to offer services that combine fiat payments with blockchain-based stablecoin transfers, in what is a rare dual-licence structure in the European Union.
The authorisations were granted by France’s ACPR (Autorité de Contrôle Prudentiel et de Résolution) and AMF (Autorité des Marchés Financiers), the national financial regulators responsible for banking and securities oversight.
With both licences in place, Merge can legally issue and manage e-money accounts, as well as conduct crypto-asset transactions across the EU.
Building a bridge between fiat and blockchain
This approval positions Merge among a limited number of firms in Europe with regulatory permission to handle both fiat and digital currencies in a single platform. Its product includes multi-currency accounts, SWIFT access, FX services, and real-time settlement using stablecoins such as USDC or EURC.
According to Kebbie Sebastian, CEO of Merge, the integration of stablecoins with existing payment infrastructure could help reduce settlement delays and costs for cross-border business transactions.
The company is targeting global enterprises that need to repatriate revenue, pay suppliers, or manage treasury operations across markets.
France takes the lead in EU crypto licensing
France has been one of the more proactive jurisdictions in the EU when it comes to crypto regulation. It introduced a formal licensing regime for digital asset service providers in 2019, and has since become a preferred entry point for fintechs looking to serve the European market.
While many crypto-native firms have obtained VASP licences in France, relatively few traditional fintechs have pursued both EMI and VASP authorisations together. Regulatory complexity, compliance costs, and the risk of unclear rules around stablecoins have slowed wider uptake.
Under the EU’s Markets in Crypto-Assets (MiCA) regulation, set to come into full effect in 2025, all crypto firms operating in the bloc will need to register under similar frameworks. The timing of Merge’s approval suggests the company is positioning itself ahead of the MiCA rollout, when licensing across fiat and crypto may become more standardised.
Potential impact on EU payments sector
The licensing gives Merge passporting rights across the European Economic Area. This allows it to scale its platform quickly without reapplying in each country. Its proposition could appeal to businesses frustrated by fragmented payment rails or costly FX conversion when trading across borders.
While other firms like Circle and Fireblocks have focused on institutional crypto infrastructure, few have combined that with licensed e-money capabilities in the EU. More fintechs may now pursue dual licensing as demand grows for compliant, blockchain-based payment solutions.
Merge is backed by investors including Coinbase and Octopus Ventures.
