DTCpay received initial regulatory approval from Luxembourg’s financial supervisor for an electronic money institution (EMI) licence, announced the firm on Monday 28 July 2025, in a move that marked the Singapore-based fintech’s first foray into the European payments market.
The Luxembourg Financial Sector Supervisory Commission (CSSF) issued a green light letter to DTCpay, the company claimed, confirming its readiness to approve the EMI licence pending final conditions. The licence, once granted, would authorise the company to issue electronic money, facilitate payment transactions and enable cross-border transfers throughout the European Economic Area (EEA).
Gateway to 450m consumers
The announcement positioned Luxembourg as DTCpay’s continental European headquarters and the group’s strategic gateway to a market of approximately 450m people across 30 countries. The move followed the company’s licensing and operational record in Singapore, where it is authorised by the Monetary Authority of Singapore as a major payment institution.
DTCpay said the expansion formed part of a broader strategy to build a real-time settlement infrastructure bridging traditional and digital finance, including integration with stablecoins and digital payment tokens.
Alice Liu, group CEO, said the Luxembourg initiative would allow the group to “become the global real-time settlement infrastructure for both Web2 and Web3,” adding that the choice of location reflected Luxembourg’s “forward-thinking financial ecosystem.”
Diplomatic ties and regulatory alignment
The company framed the expansion in the context of diplomatic ties between Singapore and Luxembourg, which marked their 50th anniversary earlier this year. It highlighted shared regulatory standards between the two jurisdictions as an enabler for its move into the EU.
Band Zhao, DTCpay’s group chairman and CEO of DTCpay Luxembourg, said the group planned to bring its services to the EEA “in full compliance with European Union (EU) regulations,” with a particular focus on stablecoin-based infrastructure.
He added that the vision was to position the company at the intersection of traditional and digital finance, and to act as a pioneer in the global fintech sector.
Licence not yet granted
While DTCpay has received a green light ;etter, the company clarified that this did not equate to a full EMI licence and was still subject to final regulatory approval by the CSSF. It cautioned that any forward-looking statements were contingent on future regulatory developments.
The company’s Luxembourg launch followed a period of heightened regulatory scrutiny around stablecoins and digital assets within the EU. The bloc’s Markets in crypto-assets (Mica) regulation, set to be fully implemented by 2026, aims to create a harmonised framework for digital finance across member states.
DTCpay said the green light letter affirmed its “rigorous research and strategic planning” and its commitment to regulatory standards in both Singapore and Europe.
