If only I'd have 350k euros lying around to pursue this route, and have clear answers :)
But from what I gather (and my memory might be a bit fuzzy) on one hand you have to safe-keep the deposits from your operating capital in full to allow redeeming them back, while at the same time you have to hold those funds in "classical" banks. In which case, I would assume, they would fall within the same guaranteed 100k deposit safety which is across the EU. However the devil is in the details, if for example you can open a bank account for each individual user, or you're holding all deposits in a single grouped account.
As an end-user if you lose the funds that would be no different to losing your wallet, and a mechanism like this shouldn't be seen as a separate "bank account". With SEPA instant payments you would top it up as an additional wallet when you need to make payments and you don't have enough funds in your account.
But from what I gather (and my memory might be a bit fuzzy) on one hand you have to safe-keep the deposits from your operating capital in full to allow redeeming them back, while at the same time you have to hold those funds in "classical" banks. In which case, I would assume, they would fall within the same guaranteed 100k deposit safety which is across the EU. However the devil is in the details, if for example you can open a bank account for each individual user, or you're holding all deposits in a single grouped account.
As an end-user if you lose the funds that would be no different to losing your wallet, and a mechanism like this shouldn't be seen as a separate "bank account". With SEPA instant payments you would top it up as an additional wallet when you need to make payments and you don't have enough funds in your account.
The most concise page I could find right now, that talks about the EMI license is https://www.icon.partners/post/what-is-an-emi-license