Paysend, an FCA regulated payments platform, has acquired Rapid SD Pty Ltd, an Australian blockchain startup, for an undisclosed amount. The news comes barely a week after Paysend launched its Pays XDR stablecoin, which is backed by a basket of five fiat currencies including the US Dollar, Euro, Yen, Chinese Yuan, and Pound Sterling.
Rapid SD was founded by Sergey Yusupov, who is a well-known member of Stellar community since 2014. Paysend’s stablecoin was also built on the Stellar network and is based on the IMF SDR basket of currencies.
The payments disruptor says it will hold fiat collaterals in escrow, meaning they have a license to receive the funds, equal in amount to the number of circulating tokens.
Paysend was formed in 2017 and currently claims over 800,000 customers and a yearly turnover of £600 million across Europe, and more than 60 countries. Users can send funds from Europe to over 12 billion Visa, MasterCard or UnionPay cards across the Paysend network of countries.
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Competition among stablecoins heats up
Commenting on the acquisition, Ronald Millar, CEO of Paysend, said: “The team behind Rapid SD has proven expertise and a solid reputation for launching outstanding products based on distributed ledger technologies.”
Rapid SD founder, Sergey Yusupov added: “I am proud to join Paysend. Its team has a proven track record in banking, finance and fintech and has built scalable proprietary technologies which, when combined with the global stablecoin that we are creating, will revolutionise the future of money.”
The news comes as competition among stablecoins heats up, with several new Euro, British pound, and US dollar-pegged tokens launching this year.
With all the controversy and mistrust surrounding Tether (USDT), it’s no surprise that a multitude of new alternatives has popped up recently. Last week, CEO of popular exchange OKEx said his company is backing a new cryptocurrency that could be pegged to the US dollar, in a partnership with SEC-regulated custodian Prime Trust.