At the time of writing, Elrond’s primary objective is to obtain a license from Twispay for the creation of stablecoins that may be used inside the European Union. Just recently, the National Bank of Romania has approved the purchase of a payment processing platform by the blockchain company Elrond.
Elrond is a blockchain company that specializes in distributed applications. Just recently, Elrond received authorization to purchase the e-money institution, Capital Financial Services. This institution operates under the trade name Twispay.
Twispay is a global payment system that accepts several fiat currencies and a wide range of payment methods for overseas transactions. As a key member of Visa and Mastercard, the company has its benefits. In regard, it now has the authority to acquire merchants and actively engage in the issue of cards.
Likewise, the company also has the authority to perform payment services as well as issue e-money. The National Bank of Romania also approved of this license. In addition, the firm is able to operate throughout the European Economic Area too.
Moreover, buying Twispay gives Elrond a leverage point in both the traditional financial sector and the emerging cryptocurrency market. Additionally, the purchase puts Elrond in a good position to provide faster and more affordable payment options.
The Benefits of Elrond Buying Twispay
Existing financial systems will benefit from a variety of Web3 technologies. This includes new stablecoins, debit cards with crypto-enabled features, and also benefits of DeFi, NFTs, and more. An Elrond official noted that one of the main goals of the new purchase is the issuance of stablecoins.
As stated, the main purpose is to use Twispay’s e-money license. This license will be used to issue stablecoins that can be used in the EU. The goal is to make use both for personal and business reasons, as well as for official use at a more institutional level.
The CEO of Elrond further emphasized the potential of the given opportunity. He adds that this is a historic decision by the Romanian Central Bank. It opens the door for EU nationals and shortly for everyone worldwide.
Elrond first declared its intention to buy the e-money business in October 2021. Correspondingly, the news comes a few months after Elrond bought Utrust in January 2022. Utrust is a major crypto payments service provider.
As a result, the company wants to play a big role in making European finances more digital. It also aims to serve as the carbon-negative, fully decentralized, low-cost, and near-instant rails for a wide range of new financial services.