The National Bank of Romania approved an acquisition in the Blockchain Industry. This allows Elrond, a blockchain startup, to purchase a payment processing platform.
According to an announcement, Elrond, a blockchain company that focuses on distributed applications, was approved to buy the electronic money institution Capital Financial Services. It acts under the brand Twispay.
Twispay is an international payment system that supports multiple fiat currencies as well as integrating different payment methods. It is a principal member in good standing of Visa and Mastercard and can acquire merchants.
According to the authorization from National Bank of Romania, the firm can also provide payment services and issue electronic money. It is permitted to operate throughout the European Economic Area.
Elrond has acquired Twispay to make a strategic move in order to be a bridge between traditional finance, and the cryptocurrency industry. Elrond is now in a position to provide infrastructure for quicker and more affordable payment solutions.
Another possible use case is the issuance of new stablecoins and crypto-enabled debit cards. There are also benefits from DeFi and other Web3 technologies, which will increase trust and efficiency in existing financial systems. Elrond spokesperson told Cointelegraph stablecoin issuance was one of the main goals of the acquisition.
“The primary goal is to use Twispay’s electronic money license for issuing stablecoins in the EU that can be used for both personal and business purposes for value transfer and payments, as well as for official institutional use.
Beniamin Mincu, founder and CEO of Elrond, stated that “this landmark decision by the Romanian Central Bank opens up the door for EU citizens and soon for everybody everywhere to significantly benefit value flowing at near-instant settlement speeds, at 100x less costs, with full transparency and higher reliability.”
Elrond first announced plans for the acquisition of the e-money services in October 2021. This latest news comes just after Elrond purchased Utrust in January 2022, a major provider of crypto payments services.
This latest acquisition will be combined with the Utrust acquisition. It is expected to play a crucial role in digitization of European finances.