Kraken and Tether Back Launch of EU-Regulated Stablecoins

The Dutch fintech firm Quantoz has announced the launch of two stablecoins compliant with MiCA regulations, following investments from Fabric Ventures, Kraken, and Tether.

Quantoz Payments Issues Euro and US Dollar Stablecoins and receives an investment from Fabric Ventures, Kraken and Tether. Read the full press release with statements from @ahansjee (@fabric_vc), @marklg (@krakenfx), @paoloardoino (@Tether_to), and our @QuantozPay CEO… pic.twitter.com/Ur5AUjm5kp

— Quantoz (@Quantoz) November 18, 2024

The EURQ and USDQ tokens on the Ethereum blockchain are pegged to the euro and US dollar, respectively. These assets are designed to facilitate transfers and payments in secondary markets, as well as transactions between cryptocurrency exchanges.

The issuer is a subsidiary of Quantoz Payments, licensed by the Dutch Central Bank as an electronic money institution.

In compliance with EU regulations, the stablecoins are fully backed by fiat reserves and highly liquid financial instruments such as government bonds. The funds are managed by an independent trust and held in segregated accounts at tier-one banks. 

Additionally, Quantoz is required to maintain an extra 2% of the collateral value on its balance sheet as part of MiCA obligations.

Exchanges Kraken and Bitfinex (affiliated with Tether) will add EURQ and USDQ to their trading platforms starting November 21.

“Support from a number of top digital asset companies in this investment round allows us to provide a timely solution for crypto markets and unlock the benefits of blockchain-based money in more traditional use cases,” said Quantoz Payments CEO Star Busmann.

Back in August, Tether’s chief Paolo Ardoino called MiCA a threat to stablecoins and the banking system.

Several exchanges, including Coinbase, Uphold, Binance, and OKX, have announced restrictions on access for EU clients to unregulated stablecoins.