U.K.-based FinTech company Wirex added two VNX stablecoins to its digital asset platform, fully licensed under the new European MiCA regulations.
Wirex users can now access VNX Euro (VEUR) and VNX Swiss Franc (VCHF) stablecoins, pegged to the euro and Swiss franc, respectively. The integration enables Wirex cardholders to utilize these assets for everyday payments and cross-border transactions. Additionally, users can instantly convert stablecoins into fiat currency and transfer funds directly to bank accounts.
According to the press release, technically, VEUR and VCHF are tokenized fiat currencies rather than traditional stablecoins. The assets are issued by VNX Commodities AG, a FinTech company regulated by the Financial Market Authority (FMA) Liechtenstein. Notably, Liechtenstein’s Ordinance on the Token and Trusted Technology Service Provider Act (TVTG) significantly influenced the pan-European MiCA regulations, set to be fully implemented on February 1, 2025.
Pavel Matveev, Co-Founder of Wirex, emphasized in the press release that the company’s goal is to make digital currencies as accessible and versatile as traditional money.
Wirex also announced plans to introduce more stablecoin-related financial products in the near future. These include X-Accounts offering up to 15% annual yield on deposits and crypto-backed loans leveraging BTC, ETH, SOL, and other assets as collateral, allowing users to access liquidity without selling their digital assets.
Max Krupyshev, CEO of CryptoProcessing.com, highlighted during the Purpose Driven FinTech podcast that innovative financial products often draw on decentralized finance principles, enabling users to secure loans without traditional banks or earn interest on their cryptocurrency holdings, extracting additional value from their digital assets.
In October 2024, Wirex launched Wirex Pay in test mode, allowing self-custodial crypto wallet users to pay for goods and services with digital assets. Earlier that year, the company rolled out an L1 blockchain network to support Wirex Pay operations in over 200 countries.
