Tether has recently made an investment in a Dutch fintech company called Quantoz to launch two new stablecoins, EURQ and USDQ. These stablecoins will be compliant with the EU’s Markets in Crypto-Assets Regulation (MiCA) and will be backed by fiat reserves. The goal is to provide a secure and regulated digital payment solution across the European Economic Area (EEA).
Quantoz, operating under a license from the Dutch Central Bank (DNB), will use Tether’s new Hadron tokenization platform to issue these stablecoins. Leading crypto exchanges Kraken and Bitfinex are scheduled to list EURQ and USDQ on November 21st.
Tether’s involvement in this partnership with Quantoz demonstrates its commitment to providing regulated financial solutions in Europe. By supporting Quantoz and utilizing technology solutions like Hadron, Tether aims to expand reliable and compliant financial tools for users in the digital ecosystem.
This strategic move by Tether may also be a response to regulatory challenges it faces with USDT in Europe. USDT, the largest stablecoin by market cap, has encountered delisting threats in Europe due to non-compliance with MiCA regulations. Tether’s investment in Quantoz could be a proactive step to adapt to these regulations and compete with other euro-backed stablecoins like Circle’s EURC and Société Générale’s EURCV.
Overall, Tether’s partnership with Quantoz signifies a strategic shift towards engaging with Europe’s regulatory environment and providing innovative financial solutions that comply with MiCA standards. This move not only positions Tether as a key player in the stablecoin sector but also reinforces its commitment to building trust and empowering users in the digital financial landscape.