Quantoz Launches EU-Regulated EURQ and USDQ Stablecoins
by Oliver Dale · BlockonomiTLDR
- Quantoz launches EURQ and USDQ stablecoins on Ethereum, backed by major exchanges Bitfinex and Kraken
- Stablecoins are fully backed 1:1 by fiat and liquid instruments like government bonds
- Assets managed by independent foundation under Dutch central bank supervision
- Company already licensed as electronic money institution before MiCA
- Follows earlier launch of EURD on Algorand blockchain in October 2023
Netherlands-based Quantoz Payments has unveiled two new stablecoins, marking a fresh entry into the digital currency market with backing from major cryptocurrency exchanges.
The company launched EURQ and USDQ, both built on the Ethereum blockchain, with support from industry heavyweights Bitfinex and Kraken.
The launch represents an expansion of Quantoz’s digital currency offerings, following their October 2023 release of EURD, a regulated digital euro issued on the Algorand blockchain.
Both new stablecoins are designed to meet European regulatory standards and are fully backed by fiat reserves and government bonds.
Quantoz has secured investment from several notable sources in the cryptocurrency industry. Beyond Bitfinex and Kraken’s participation, venture capital firm Fabric Ventures has also provided backing.
Additionally, stablecoin issuer Tether has supported the company and granted access to its Hadron asset tokenization infrastructure.
The company’s approach to asset management involves an independent foundation operating under the supervision of De Nederlandsche Bank, the Dutch central bank. This structure ensures oversight of the one-to-one backing of the stablecoins with fiat currency and highly liquid financial instruments.
The reserve assets are segregated and held in tier-1 banks, providing an additional layer of security for users. This arrangement aligns with regulatory requirements and aims to build trust in the stability of the digital currencies.
EURQ and USDQ serve different market segments within the digital currency ecosystem. While EURD focuses on corporate treasury management and institutional operations, EURQ targets broader market adoption, including cryptocurrency exchanges and cross-border payments.
The timing of Quantoz’s launch coincides with increasing regulatory oversight in the European Union. The company completed its licensing process as an electronic money institution with the Dutch Central Bank before the implementation of the Markets in Crypto-Assets (MiCA) framework.
CEO Arnoud Star Busmann highlighted the company’s proactive approach to regulation, noting that Quantoz invested considerable time in securing proper licensing. “We received our license from the Dutch Central Bank a year ago,” Busmann stated in an interview with Decrypt.
The current regulatory environment in Europe has created challenges for stablecoin issuers. Recent events, such as Coinbase’s stablecoin delisting last month, underscore the importance of compliance with new regulations. MiCA requires stablecoin issuers to maintain full fiat reserve backing and implement prudential safeguards.
The listing of EURQ and USDQ on Bitfinex and Kraken provides immediate access to major trading platforms. This availability on established exchanges offers potential for market adoption and liquidity from day one.
Corporate payments represent a key target market for Quantoz’s stablecoins. The company aims to facilitate faster and more cost-effective transactions for businesses operating across borders.
Consumer ecosystems form another focus area for the new stablecoins. The digital currencies are designed to enable everyday transactions while maintaining regulatory compliance and stability.
The launch includes technical infrastructure for cross-border financial operations. This system aims to reduce friction in international payments and settlements using blockchain technology.
Quantoz’s development of these stablecoins occurred against the backdrop of broader discussions about digital currencies in Europe. The company’s approach aligns with regulatory trends while maintaining operational flexibility.
The reserve structure for both EURQ and USDQ includes government bonds alongside fiat currency, providing a diversified backing for the digital assets. This arrangement aims to maintain stability while generating returns on the reserve assets.