As Europe edges closer to the final enforcement deadline of the Markets in Crypto-Assets Regulation (MiCA) by the end of the year, Schuman Financial, steered by former Binance executives including Martin Bruncko and Eduardo Morrison, has stepped into the spotlight. The firm recently concluded its stealth phase and introduced a new euro-backed stablecoin, EURØP.
The unveiling of EURØP follows Schuman Financial’s successful funding round, which closed at 7 million euros ($7.36 million) in September. The seed round was led by Web3-focused venture capital firm RockawayX. This round also saw participation from a plethora of investors such as Lightspeed Faction, Kraken Ventures, Nexo Ventures, GnosisVC, Delta Blockchain Fund, Renaissance Ambition AG, Bankless Ventures, and others.
EURØP’s Market Introduction
Schuman Financial’s debut product, EURØP, aligns with a 1:1 euro peg and targets global users. The stablecoin is designed for various applications including digital payments, on-chain foreign exchange trading, and the tokenization of real-world assets. According to a company spokesperson, EURØP is fully backed by cash and cash equivalents and is set to go live within the next two weeks, although an exact date has not been set. Initially, EURØP will be accessible on the Ethereum and Polygon networks and plans are in place for it to be listed on all major European centralized crypto exchanges, with further blockchain and decentralized finance integrations expected in the upcoming months.
In alignment with MiCA regulations, Schuman Financial’s compliance was solidified through its subsidiary, Salvus SAS, acquiring an electronic money institution license in France. This approval by the French Prudential Supervision and Resolution Authority allows the issuance of e-money tokens pegged to any currency across Europe. The firm is now poised to develop a regulated stablecoin ecosystem that includes integration with the Single Euro Payments Area (SEPA), as well as partnerships with major global banks like Société Générale for banking channels and custody.
Geographic Restrictions and High-Risk Jurisdictions
Despite its global ambitions, Schuman Financial will not serve all markets. The company has identified 107 countries as high-risk jurisdictions, including Iran, North Korea, Venezuela, and the Russian Federation, and has placed restrictions on these areas. Notably, the list includes significant stablecoin markets like Turkey, El Salvador, South Africa, and the United Arab Emirates, based on data from international bodies such as the Financial Action Task Force, the European Union, the United Nations, the Office of Foreign Assets Control, and Transparency International.
| Feature | Details |
|---|---|
| Backing | 1:1 Euro, fully backed by cash equivalents |
| Target Markets | Global, excluding 107 high-risk countries |
| Initial Networks | Ethereum and Polygon |
| Regulatory Compliance | MiCA, licensed under French authorities |
| Funding | €7 million, oversubscribed seed round |
| Use Cases | Digital payments, FX trading, asset tokenization |
The launch of EURØP by Schuman Financial not only marks a significant milestone in the adoption of digital currencies but also highlights the evolving landscape of financial technology. As regulatory frameworks like MiCA start to take effect, the creation of stablecoins that are compliant, transparent, and backed by stable financial assets like the euro could set a new standard for the cryptocurrency industry. This move could pave the way for more secure and stable digital economies, especially in regions that are cautiously monitoring the volatile crypto market. The success of EURØP could inspire a wave of similar financial products that could fundamentally transform how global transactions are conducted.
Featured image credit: Old Photo Profile via Flickr
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