Bridge gains EU crypto and e-money approvals in Luxembourg

Stripe-owned Bridge has received a Crypto-Asset Service Provider authorisation under the EU’s Markets in Crypto-Assets Regulation and an Electronic Money Institution licence in Luxembourg, the company said. Bridge said the two approvals apply across all 27 EU member states, giving it a broader regulatory basis to offer stablecoin and euro services to European companies and consumers.

The approvals place Bridge inside one of the most developed rulebooks for digital assets, according to the company. Bridge said the framework sets requirements covering capital reserves, custody and operational safety.

Bridge already supports businesses and developers that convert funds between stablecoins and euros, the company said. With the new authorisations, Bridge said it can add services in Europe including virtual IBANs issued in customers’ names and bespoke stablecoins backed by euros.

What the licences allow Bridge to offer

Bridge described the approvals as a dual-licensing arrangement. The MiCA authorisation covers its role as a crypto-asset service provider, while the Luxembourg EMI licence supports electronic-money services linked to euro accounts and payments.

The company said the structure lets European fintechs provide customers with named IBANs and euro accounts across the EU’s 27 member states through Bridge, rather than establishing separate banking relationships in each national market. IBANs, or International Bank Account Numbers, are the account identifiers used for euro payments and transfers across the region.

Bridge also said businesses will be able to create their own euro-backed stablecoins for uses such as fiat-to-crypto conversion, crypto-to-fiat conversion, rewards, loyalty products and in-app currencies. According to Bridge, those customers would not need to build the compliance systems or reserve infrastructure that sits behind such products.

For larger companies, Bridge said custom stablecoins could be used to transfer funds between subsidiaries. The company said banks could also use stablecoin rails to settle with other institutions faster and at lower cost than through traditional interbank messaging systems.

Stablecoin services under EU rules

The authorisations expand Bridge’s European regulatory footprint at a time when stablecoin issuers and infrastructure providers are adapting to MiCA, the EU regime for crypto-asset markets. Bridge said the licences give businesses using its platform a compliant framework for stablecoin products tied to the euro.

Mai Leduc Blount, Bridge’s head of product, said a company in the EU can now issue a euro stablecoin and connect it with named IBANs and named euro payouts across the bloc through one integration. She said Bridge works with regulators globally so businesses can use stablecoins.

Bridge did not disclose financial terms, timing details for service launches or any specific customer names in the announcement.

This story draws on original reporting from Finextra Research.