Elrond Buying e-Money Licensed Capital Financial Services (Twispay)
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Elrond Network, the European startup developing groundbreaking internet-scale blockchain technology, announced today the acquisition of Capital Financial Services S.A. (operated under the Twispay brand), a company licensed to operate as an Electronic Money Institution (EMI) in the European Economic Area.
Capital Financial Services S.A. was the first company to be granted an electronic money institution licence in Romania.
Being a principal member of Visa and Mastercard, Capital Financial Services S.A. provides payment processing services to more than 300 merchants, including companies such as Blue Air, Romania’s largest airline. Romania has been a member of the European Union since 2007.
Elrond Network would be able to offer debit cards
The acquisition includes the full transfer of Capital Financial Services S.A. shares, which could enable Elrond Network to facilitate broader access to financial services in full compliance with current regulation. Thus, the company could offer, for instance, customer accounts with IBANs, associated debit cards, and payments of e-money currencies.
e-Money is designed as a digital alternative to cash for automating financial transactions in areas such as payments and e-commerce. Elrond Network seeks to enhance the utility of this proven and regulated value transfer framework and take it to its natural conclusion by complementing it with a blockchain technology that is fast, scalable and inexpensive.
Commenting on the deal, Beniamin Mincu, Elrond Network CEO said: “Elrond’s goal is to create the infrastructure for a high bandwidth, low latency, transparent financial system, and give anyone anywhere easy access to it. To achieve this we are proactively working with regulators to operate in a fully compliant manner within the perimeter defined by European law.”
Mincu continued: “Users, merchants, companies and money institutions could benefit significantly if money flows would happen with near-instant settlement times, at 100x less cost than we pay now, with full transparency, and higher reliability.”
Elrond has been gaining traction lately. Automaker Audi’s Holoride extended reality media platform system runs on the Elrond blockchain.
“By complementing the remarkable contribution of the Elrond blockchain, with the expertise of the Capital Financial Services S.A. team in regulated financial services and valuable EU licenses, we are creating the premises for an important evolution of financial services efficiency,” added Augustin Dobre, CEO Twispay.
Elrond deal awaits approval by authorities
The last step necessary for the completion of Capital Financial Services S.A. acquisition by Elrond Network, is the approval of Romania’s National Bank, the country’s central bank.
This is a step of significant strategic importance for Elrond Network. The company says it will continue to offer updates on the evolution of the talks leading up to the finalisation of the deal.