30s Summary

Netherlands-based fintech Quantoz is introducing regulation-compliant stablecoins pegged to the euro and U.S. dollar on the Ethereum blockchain. With approval from the Dutch Central Bank, the company has obtained the required Electronic Money Institution license and secured investments from Fabric Ventures, Kraken, and Tether. Its EURQ and USDQ tokens will be listed on Bitfinex and Kraken for eligible users. Quantoz aims to fill a gap in the European stablecoin market, with its offerings useful for high-volume, low-value transactions and efficient treasury management through tokenized assets.

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As stablecoins become more popular, the Netherlands-based fintech company Quantoz hopes to jump into the European market. The company will issue stablecoins that adhere to regulations and are pegged to the euro (EURQ) and U.S. dollar (USDQ) on the Ethereum blockchain. These tokens are completely backed by fiat reserves like government bonds.

The Dutch Central Bank has given Quantoz the Electronic Money Institution (EMI) license. This license is necessary for stablecoin issuers wanting to operate in the EU. Quantoz has also secured investments from venture capital firm Fabric Ventures, crypto exchange Kraken, and stablecoin giant Tether. The amount of money raised in the round wasn’t shared.

EURQ and USDQ will first be listed on Bitfinex and Kraken and will be available for trading to eligible users starting Thursday. Stablecoins are tokens pegged to fiat currencies, which have grown to a $180 billion asset class within the crypto sphere. They are key for the digital asset market as they provide liquidity to buy and sell crypto on exchanges. They are also increasingly popular for everyday payments and money transfers due to cheaper and faster settlements on blockchains compared to traditional banks.

Quantoz’s launch comes at a time when new EU-wide rules (MiCA) are soon going to be fully implemented. These rules will require stablecoin issuers to obtain the necessary license or face delisting from regulated exchanges. While the company behind USDC has complied, Tether is yet to get the necessary licensing.

“There’s a gap in the stablecoin market here in Europe, and we see that as an opportunity,” said Arnoud Star Busmann, CEO of Quantoz Payments. “We are confident that our tech and regulatory compliance put us in a good position to fill that gap, especially now that we have strong partners like Kraken and Tether.”

Stablecoins can be really useful in areas where traditional banking isn’t up to the task, such as high-volume, low-value transactions. With stablecoins, cash can be moved in and out of money market funds without traditional delays.

Quantoz also uses tokenization, a process of creating digital versions of traditional financial instruments like bonds. These tokenized assets, when combined with stablecoins, can offer businesses and institutions a more efficient way to manage their treasury, thanks to near-instantaneous settlement instead of one or two days of delay.

“We are building an ecosystem that can support a wide range of use cases, from everyday payments to more complex financial transactions,” Busmann explained.