Why EUROe?

Issued Under Established & Widely Recognised Legal Frameworks

EUROe is treated as electronic money, a generally recognised legal framework within the EU.

EUROe is not governed under proprietary, private, or otherwise not internationally recognised standards, such as the CAST framework.

MiCA Compliant Electronic Money

EUROe is regulated as electronic money, a regulatory framework that can be traced back over 20 years. Hence, the regulation & legislation regarding the treatment of EUROe is well established.

EUROe is fully MiCA compliant.

Users of EUROe do not need to worry about EUROe becoming illegal once MiCA becomes effective in 2024.

Thorough AML & CFT Processes Minimise Risks

Membrane Finance strictly adheres to the current AML & CFT regulation, legislation, and guidance relevant to it, its business, and its counterparties. Membrane Finance performs due diligence on all its customers to the extent necessary. Membrane Finance also performs strict AML & CFT screening on any wallets/addresses it interfaces with.

Tightly Monitored & Controlled Issuance Process

Issuance of EUROe is controlled by Membrane Finance. EUROe can only be issued by a set of addresses publicised in the EUROe Developer Portal. The addresses with the right to issue EUROe are MPC-CMP addresses which minimise the risk of compromising the keys responsible for the functions.

Issuance of EUROe always requires an exactly matching incoming fiat transaction to a customer asset account held by Membrane Finance. EUROe is never issued for credit.

EUROe issuance involves manual and automated checks with varying policies for different amounts.

Industry Leading Operational Security

Membrane places EUROe's operational security as a top priority in everything we do. Among other measures, Membrane

• Has a thorough risk management and information security program;
• Has appointed a compliance officer to oversee the operations of the platform;
• Completes background checks for relevant personnel;
• Has implemented an internal whistleblowing program;
• Conducts regular security reviews for all our systems; and
• Requires systems and operations to adhere to a business continuity plan, which includes, for example, requirements for geographic separation.

Built-In Protections From Blockchain Reorganisations

Minting, bridging, and redemption of EUROe are subject to minimum time delays to prevent duplication of funds due to blockchain reorganisations.

Resilient To Blockchain Failures

EUROe is resilient to the failure of blockchains. Membrane Finance implements precautionary measures to honour the claims of EUROe holders even in the case of the permanent failure of the underlying blockchain on which EUROe was issued.

Internal Systems Implemented with a "Security First" -Approach

EUROe Internal Systems are implemented independently of any other system in a restricted cloud environment with strict access controls.

Furthermore, timelocks and multi-party signatures are required to initiate certain actions.

Furthermore, before any request from an Internal System is executed on-chain, it must pass through a separately implemented verification system operated by different staff members. All our internal system components are subject to internal and external security reviews.

Audited, Transparent, and Role-Based Smart Contracts

EUROe smart contracts are developed by Membrane in collaboration with Equilibrium, a leading blockchain development organisation. Furthermore, all EUROe smart contracts are independently audited by recognised top-tier auditors.

The stablecoin contracts have role-based access controls, and Membrane Finance implements a multi-party computing system to secure transaction signing.

Furthermore, the admin and proxy owner roles, which can reassign other roles and upgrade the contract, respectively, are planned to undergo migration to a multi-sig controlled address.

EUROe Utilises Well Recognised and Accredited Third Party Vendors

Membrane relies on third parties for some parts of the system implementation. When third-party technologies are used, Membrane considers its risks as part of the business continuity plan and implements redundant systems where possible.

Transparently Governed by One Entity

EUROe is solely issued by Membrane Finance Oy, a limited liability company duly registered in Finland and authorised as an electronic money institution by the Finnish Financial Supervisory Authority. Membrane Finance Oy does not have subsidiaries or off-shore entities.

Membrane Finance Oy’s board of directors includes

• Teemu Päivinen, chair
• Laura Lehtinen
• Juha Viitala
• Otto Wirkkala

Customer Assets Are Custodied in Regulated Financial Institutions in the EEA

All assets backing EUROe are held in regulated financial institutions in the EEA. A minimum of 40% of EUROe’s backing will be held in cash, and up to 60% can be invested in highly liquid, high credit rating, short-maturity bonds, such as government bonds. All instruments backing EUROe are market-to-market on a daily basis and any losses from investment activity will be incurred by Membrane Finance.

All assets backing EUROe are held in bankruptcy accounts ring-fenced from the funds of Membrane Finance.

Audited by Established Companies

Membrane Finance Oy has appointed KPMG as its internal auditor and Grant Thornton as the financial auditor.

Stability by Regulation

As electronic money, EUROe is always redeemable back to fiat euros in a 1:1 ratio by law. This means that EUROe has an intrinsic value that ensures 1 EUROe is always worth 1€.

Committed to Frequent and Regular Reserve Reporting

Membrane Finance provides regular reports, attestations, and audits of the quality and quantity of EUROe reserves on its website. Furthermore, Membrane Finance is working towards making its reserve data as transparent and open as possible, given the restrictions within the current financial system. Membrane Finance has committed to improving its transparency through, for example, the publication of on-chain proof of reserves data as soon as feasible.

Fully Collateralised with a 2% CET1 Equity Capital Buffer

As electronic money, every EUROe in circulation is backed by at least an equivalent value of Euro-denominated assets subject to prudential supervision and reserve management policies that are designed to at all times meet or exceed demands for EUROe in circulation.

Additionally, Membrane Finance shall at all times have a buffer of CET1 equity capital (‘own funds’) equivalent to at least 2% of the amount of EUROe in circulation.

In practice, this means that all EUROe in circulation is backed by reserve assets and equity buffer equal to 102% of the total value of issued EUROe.

Fully Compatible with Widely Used Blockchain Standards

EUROe is a standard ERC-20. It can be integrated with any existing smart contracts and systems that support the ERC-20 standard without further modifications.

EUROe’s usage in smart contracts is not limited by whitelisting or transaction-level approval mechanisms.

Privacy Preserving

Membrane Finance, the issuer of EUROe, only needs to know the counterparties it is directly interfacing with. Membrane Finance does not need to know the identity of the end-users of EUROe, nor does it KYC all end-users of EUROe.

EUROe Is Built with Industry Standards & Best Practices In Mind

Membrane follows industry standards and modern best practices in software development, infrastructure, product management, and operations.