Payments provider already invests corporate funds in AAA-rated money market funds managed by BlackRock and intends to extend their use to safeguarded client funds, supporting the FCA's expectation that firms consider diversification of their safeguarding arrangements to mitigate concentration risk
LONDON, UK / ACCESS Newswire / July 20, 2026 / My EU Pay Limited, a UK Financial Conduct Authority (FCA) Authorised Payment Institution (FRN 789978), set out plans to diversify how it safeguards customer funds. The company already invests its own corporate funds in AAA-rated money market funds managed by BlackRock, and intends to extend their use to safeguarded client funds - holding eligible balances across a series of eligible AAA-rated money market funds - once the necessary UK-based custody arrangements are in place.
Safeguarding is a core regulatory obligation for payment institutions. As an Authorised Payment Institution, My EU Pay keeps relevant customer funds segregated from its own corporate money. The FCA expects firms to consider diversifying where safeguarded funds are held, rather than concentrating them with a single institution. Placing a portion of eligible safeguarded funds in a secure, liquid, low-risk money market fund managed by BlackRock - alongside safeguarding accounts held with credit institutions - is intended to support that diversification while keeping customer money ring-fenced from the firm's own balance sheet. Any such arrangement would be operated in line with the FCA's CASS 15 safeguarding requirements for payments and e-money firms, which took effect on 7 May 2026.
Because the relevant money market funds are domiciled in Ireland, My EU Pay will establish a UK-based nominee and custody arrangement to hold the relevant assets before the funds are used for safeguarding purposes.
My EU Pay has begun the technical integration work to support the arrangement, including onboarding for access to the fund manager's developer portal. Timing will depend on the completion of that integration and the associated custody arrangements.
Why the approach matters
The money market funds in question are authorised, regulated funds rated AAA by independent agencies including S&P, Moody's and Fitch. Short-term money market funds of this type aim to preserve capital and provide daily liquidity by investing in high-quality, short-dated instruments. Extending their use to safeguarded funds is intended to give My EU Pay's arrangements greater diversification across high-quality issuers, daily access to funds, and independent credit oversight - consistent with the FCA's focus on how firms safeguard and diversify client money.
"Protecting our customers' money is fundamental to how we operate. Building on our existing use of AAA-rated money market funds, our intention is to extend them to safeguarded client funds and further diversify how that money is held," said Sarah Dees, CEO of My EU Pay.
My EU Pay provides cross-border payment services and a payments-as-a-service platform for businesses, supporting SEPA Credit Transfer, SEPA Instant, Faster Payments and SWIFT rails.
Important information
The arrangements described in relation to safeguarded funds reflect the company's current intentions and are not yet in place. Safeguarding is not the same as deposit protection. My EU Pay is a payment institution, not a bank, and its services are not covered by the Financial Services Compensation Scheme (FSCS). Money held in a money market fund is not a bank deposit, is not guaranteed, and its value can rise and fall; customers may not get back the full amount. Safeguarding arrangements are designed to protect and return customer funds in the event of the firm's insolvency, in line with applicable FCA rules.
About My EU Pay
My EU Pay Limited is registered in England and Wales (No. 10661695), with its registered office at 24 King William Street, London, EC4R 9AT. It is authorised by the Financial Conduct Authority (FRN 789978) as an Authorised Payment Institution and provides payment services and a payments-as-a-service platform to business customers. Products and services offered by My EU Pay Limited are not covered by the Financial Services Compensation Scheme (FSCS). Learn more at myeupay.com.
About S8 Global Fintech & Regtech Fund
S8 Global Fintech & Regtech Fund (Luxembourg) is a closed-ended investment fund focused on the fintech and regtech sectors. It is the indirect 100% owner of My EU Pay Ltd., held through its holding company Finteva Ltd., and is the issuer of this release.
As a closed-ended fund, S8 Global Fintech & Regtech Fund is not offering its shares or units. This release is issued for information purposes only and does not constitute an offer, invitation, solicitation or recommendation to buy or subscribe for any securities, fund interests or investment product, in any jurisdiction.
Media contact: Sarah Dees - support@myeupay.com
SOURCE: S8 Global Fintech Regtech Fund
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/my-eu-pay-to-diversify-client-fund-safeguarding-with-blackrock-aaa-r-1193327
