As stablecoins gain traction, Dutch fintech firm Quantoz is aiming to grab a slice of the European market with the launch of its regulatory-compliant euro (EURQ) and US dollar (USDQ) pegged tokens on the Ethereum blockchain. The company announced Monday that the coins are fully backed by fiat reserves and highly liquid financial instruments like government bonds.
Quantoz’s foray into the stablecoin space comes at a pivotal moment for the EU crypto landscape, as the bloc’s landmark Markets in Crypto Assets (MiCA) regulations are set to come into full force by year’s end. The Dutch Central Bank has already granted Quantoz the necessary e-money license to operate as a stablecoin issuer within the EU.
Filling the Stablecoin Void in Europe
According to Quantoz Payments CEO Arnoud Star Busmann, there is currently a gap in the European stablecoin market that presents an opportunity for MiCA-compliant players like Quantoz. He emphasized the company’s strong regulatory and technological compliance positioning, bolstered by partnerships with major crypto exchange Kraken and leading stablecoin issuer Tether.
“We are convinced that our regulatory and technological compliance puts us in a good position to fill this gap, especially now that we have strong partners like Kraken and Tether on board,” Busmann told CoinDesk.
The EURQ and USDQ tokens will initially be listed on Bitfinex and Kraken exchanges, with trading set to commence for eligible users starting Thursday. Quantoz’s stablecoin issuance comes as incumbent players face an uncertain future in the EU market.
Incumbents Grapple with MiCA Compliance
While Circle, the issuer of the $36 billion market cap USDC stablecoin, has stated it meets the requirements to operate in the region, Tether has been a vocal critic of the new rules and has yet to secure the necessary licensing. MiCA mandates that stablecoin issuers either comply or potentially exit the 450 million consumer market as regulated entities like exchanges delist unauthorized tokens.
Stablecoins: A Key Pillar of Crypto Infrastructure
Stablecoins, tokens pegged to fiat currencies, have emerged as a $180 billion asset class within the broader cryptocurrency market. They serve as a crucial source of liquidity for buying and selling crypto on exchanges and are increasingly popular for everyday payments and remittances due to faster, cheaper settlements on blockchains compared to traditional banking rails.
Busmann highlighted the potential for stablecoins to drive efficiencies in areas where legacy banking infrastructure falls short, such as high-volume, low-value transactions. He envisioned a future where stablecoins could enable seamless transfers to and from money market funds without the usual T+1 or T+2 day delays.
“Imagine being able to move liquidity in and out of money market funds without the traditional T+1 or T+2 day lags,” Busmann remarked.
Tokenization: The Next Frontier
Beyond stablecoins, Quantoz is also venturing into tokenization – the growing trend of creating digital representations of traditional financial instruments like bonds on blockchains. Combining tokenized assets with stablecoins could provide businesses and institutions with more efficient cash management solutions, leveraging near-instant settlement instead of one to two-day lags, according to Busmann.
“We are building an ecosystem capable of supporting a wide range of use cases, from everyday payments to more complex financial transactions,” he stated.
As the EU stablecoin market braces for a MiCA-induced shakeup, Quantoz’s euro and dollar-backed tokens have emerged as new contenders vying to fill the potential void left by non-compliant incumbents. With the Dutch fintech startup touting its regulatory and technological edge, the battle for European stablecoin supremacy may have only just begun.
