Quantoz launches two new MiCA-compliant stablecoins pegged to the dollar and the euro, with support from Tether, Kraken and Fabric Ventures.
Quantoz, a fintech company based in the Netherlands, has announced the launch of two new stablecoins regulated under the European Union’s MiCA (Markets in Crypto-Assets) regulations. These stablecoins, known as EURQ (pegged to the Euro) and USDQ (pegged to the US Dollar), have been developed in collaboration with Tether, Kraken, and Fabric Ventures. Although the exact amount of the investment has not been disclosed, the involvement of these renowned companies indicates strong support for Quantoz’s entry into the regulated stablecoin market.
Tether, the world’s largest stablecoin issuer, has decided to invest in Quantoz to support the launch of these new stablecoins. This strategic partnership not only strengthens Quantoz’s position in the European market, but also reflects the growing importance of stablecoins in the digital financial ecosystem. Kraken, one of the largest and most trusted cryptocurrency exchanges, has also participated in the investment, suggesting that it sees great potential in the Quantoz project.
Regulatory compliance: a crucial step
The launch of EURQ and USDQ comes at a crucial time for the stablecoin market in the European Union. Later this year, MiCA regulations will come into effect, requiring all stablecoins to operate under a strict regulatory framework. Quantoz has obtained the Electronic Money Institution (EMI) license granted by the Central Bank of the Netherlands, allowing it to issue stablecoins in the European market legally and securely.
This license is an essential requirement for stablecoins to operate in the European Union, and Quantoz is one of the first companies to meet these requirements. Arnoud Star Busmann, CEO of Quantoz Payments, has highlighted that the company's technology and regulatory compliance put them in an advantageous position to take advantage of opportunities in the European market. “There is a gap in the stablecoin market in Europe, and we see that as an opportunity”, Busmann said in an interview with CoinDesk.
Features and operation of EURQ and USDQ
The EURQ and USDQ stablecoins will be issued on the Ethereum blockchain, one of the most secure and reliable platforms in the crypto world. These coins are designed to maintain a stable value, pegged 1:1 to their respective fiat currencies. To ensure this stability, Quantoz has assured that the stablecoins will be backed by fiat reserves and liquid financial assets, such as government bonds, held in segregated accounts.
Additionally, Quantoz will comply with MiCA requirements, which include maintaining 2% of reserves on its balance sheet. This measure ensures that the company has the ability to respond to potential liquidity issues and maintain user trust. “We are building an ecosystem that can support a wide range of use cases, from everyday payments to more complex financial transactions,” Busmann explained.
Impact on the European market
The launch of EURQ and USDQ has the potential to transform the stablecoin market in Europe. Currently, Circle and Société Générale dominate the euro-pegged stablecoin market, with a market share of 67%. However, with the entry into force of MiCA, new competitors are expected to emerge, seeking their own space in the market.
Tether, despite being the world’s largest stablecoin issuer, has yet to obtain the necessary license to operate in the European market. This situation has created an opportunity for Quantoz, which has the support of Tether and Kraken to launch its own MiCA-compliant stablecoins. “Our support for Quantoz highlights Tether’s commitment to promoting innovative and regulated solutions in the digital asset landscape”, said Paolo Ardoino, CEO of Tether.
Use cases and benefits
Stablecoins have a wide range of applications in the financial world. In the European context, where traditional banking infrastructure can be slow and expensive, stablecoins offer a faster and more efficient alternative for making payments and transfers. For example, a company can use EURQ to make international payments without incurring high fees or facing transaction delays.
In addition, stablecoins can be useful in situations where traditional banking infrastructure is inadequate. For example, in high-volume, low-value transactions, stablecoins allow cash movements in and out of money market funds without the usual T+1 or T+2 day delays. “Imagine being able to move cash in and out of money market funds without traditional delays.”, Busmann illustrated.
Tokenization and the future of finance
Quantoz is not only focused on launching stablecoins, but also has a tokenization division. Tokenization is an emerging trend in the crypto world that involves creating digital versions of traditional financial instruments, such as bonds. Combining stablecoins with tokenized assets can offer a more efficient way for businesses and institutions to manage their treasuries, thanks to near-instant settlements instead of the usual one- or two-day delays.
“We are building an ecosystem that can support a wide range of use cases, from everyday payments to more complex financial transactions.”, Busmann reiterated. This holistic approach not only seeks to take advantage of opportunities in the stablecoin market, but also to foster innovation and adoption of blockchain technologies in the financial sector at large.
