OpenFX has agreed to acquire Embed, an embedded payments company based in Amsterdam.

The transaction is subject to customary regulatory approval. It marks one of OpenFX’s largest financial commitments outside the US.

Following the acquisition, OpenFX will open new offices in London and Amsterdam. A 20-member team specialising in product, growth, regulatory affairs, and compliance will staff these locations.

This regional expansion increases the global workforce of OpenFX to 140 employees across the US, the UAE, India, and Singapore.

Expanding regulatory access

Embed brings two regulated financial entities to the transaction. These include a Dutch Payment Institution holding European Union passporting rights and a UK Electronic Money Institution.

OpenFX plans to supplement these existing authorisations by securing a Markets in Crypto-Assets Regulation license. This addition aims to create a comprehensive stablecoin payments regulatory stack across both jurisdictions.

Embed originally operated as a crypto-native payments business.

The founding team later shifted focus to traditional embedded finance due to an unfavourable regulatory environment for blockchain-based payments at the time.

During this pivot, the company developed multi-party balance accounts, payment collection infrastructure, payout systems, and an application programming interface for vertical software platforms.

The underlying infrastructure provides virtual international bank account numbers, multi-rail bank connectivity, and operational coverage across the European Economic Area and the United Kingdom.

“We built this stack for a different use case, but the underlying infrastructure is exactly what a cross-border platform needs: virtual IBANs, multi-rail bank connectivity, EEA and UK coverage. Combining it with OpenFX’s distribution is the right home for the technology.”

Alex Schoonkind, Co-Founder of Embed.

Integrating stablecoin settlement

The acquisition aligns with the core operating model of OpenFX. The company uses programmable money rails and stablecoin settlement, reducing reliance on traditional correspondent banking networks.

The platform executes cross-border transactions in less than an hour. It operates active payment corridors connecting the United States, Europe, Latin America, the Middle East, and South and Southeast Asia.

OpenFX reports an annualised total payment volume of US$60 billion. The network aims to enable faster execution than conventional banking systems.

Schoonkind founded Embed alongside Chief Operating Officer Andrei Valeanu and Chief Technology Officer Konstantin Indjov. The founders bring previous payments industry experience from firms including Form3, Verifone, Ingenico, and Uber Payments.

The European expansion reflects a strategy to operate localised financial infrastructure under direct supervision from regional authorities.

European venture capital firms Northzone and Atomico provide financial backing for the expansion.

Featured image credit: Edited by Fintech News Switzerland, based on image by sodawhiskey via Magnific