Stablecoins are becoming more popular, and a Netherlands-based fintech firm, Quantoz, is looking to make its mark on the European market. The company has announced the launch of regulatory-compliant stablecoins pegged to the euro (EURQ) and U.S. dollar (USDQ) on the Ethereum blockchain. These tokens will be fully backed by fiat reserves and highly-liquid financial instruments such as government bonds.
Quantoz has obtained an Electronic Money Institution (EMI) license from the Dutch Central Bank, which is a crucial requirement for stablecoin issuers operating in the EU. The company has also received investments from venture capital firm Fabric Ventures, crypto exchange Kraken, and stablecoin giant Tether. The size of the fundraising round, however, has not been disclosed.
The EURQ and USDQ stablecoins will initially be listed on Bitfinex and Kraken, and will be available for trading to eligible users starting Thursday. Stablecoins are tokens that are pegged to fiat currencies and have become a $180 billion asset class within the cryptocurrency industry. They play a vital role in providing liquidity for buying and selling cryptocurrencies on exchanges, as well as for everyday payments and remittances due to their faster and cheaper settlement times on blockchains compared to traditional banking systems.
Quantoz’s launch of these stablecoins comes at a crucial time for crypto businesses in the EU, as region-wide rules (MiCA) are set to come into full force by the end of the year. These rules require stablecoin issuers to comply with regulations or risk being delisted by regulated players such as exchanges. While some companies, like Circle, have already fulfilled the requirements to operate in the region, Tether has been critical of the new rules and has yet to obtain the necessary licensing.
Arnoud Star Busmann, CEO of Quantoz Payments, a subsidiary of Quantoz, sees a gap in the European stablecoin market and views it as an opportunity. He believes that the company’s technology and regulatory compliance, along with strong partnerships with Kraken and Tether, position them well to fill this gap. Stablecoins can have a significant impact in areas where traditional banking infrastructure is lacking, particularly in high-volume, low-value transactions.
In addition to stablecoins, Quantoz also operates a tokenization business, which involves creating digital versions of traditional financial instruments like bonds. By combining tokenized assets with stablecoins, businesses and institutions can more efficiently manage their treasury with near-instantaneous settlement times, as opposed to the typical delays of one or two days.
Busmann envisions building an ecosystem that can support a wide range of use cases, from everyday payments to complex financial transactions. The launch of EURQ and USDQ stablecoins by Quantoz represents a significant step forward in the European stablecoin market, offering more options for users and businesses looking to leverage the benefits of digital assets and blockchain technology.