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Quantoz Payments, a Dutch fintech firm supported by Tether, Kraken, and Fabric Ventures, is set to introduce two stablecoins that adhere to the European Union’s Markets in Crypto-Assets Regulation (MiCA).
These tokens, linked to the euro and U.S. dollar (EURQ and USDQ), are scheduled to launch on November 18 and have received licensing as e-money tokens (EMTs) from the Dutch Central Bank (DNB), as stated in a press release on Monday.
Fully collateralized by fiat reserves, EURQ and USDQ are intended to offer a secure, regulated solution for digital transactions within the European Economic Area (EEA).
Kraken and Bitfinex to List the Stablecoins
Kraken and Bitfinex will list the stablecoins on November 21, making them accessible to eligible clients throughout Europe. The tokens are designed to enable quicker, more affordable, and clearer payment processes for both individuals and businesses.
This launch marks a significant step in the advancement of regulated digital finance in the EU, aligning with MiCA’s comprehensive framework aimed at fostering trust in stablecoin issuers.
MiCA imposes stringent requirements, including a 1:1 fiat backing and an additional 2% reserve, ensuring transparency and reducing risks associated with digital payments.
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
“Europeans are vocal about MICAR facilitating seamless stablecoin issuance in Europe, and while there are clearer regulations, very few entities can execute it at scale,” stated Anil Hansjee, general partner at Fabric Ventures.
Despite his firm’s involvement, Tether CEO Paolo Ardoino has raised concerns regarding certain elements of MiCA.
He cautioned that the stipulation for stablecoin issuers to maintain at least 60% of their reserves in European banks could introduce systemic risks.
Banks, which frequently lend out up to 90% of their reserves, may face vulnerabilities during financial turmoil, potentially jeopardizing the stablecoin ecosystem.
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In another development, Norway’s central bank, Norges Bank, has recently supported MiCA regulations while evaluating their impact on a central bank digital currency (CBDC).
Although Norway, a member of the EEA, backs MiCA, its decision regarding CBDC issuance is still pending.
The bank is investigating the feasibility of a CBDC-based cross-border payment system.
Stablecoin Market Remains Unregulated in the US
Significantly, the stablecoin market, currently valued at over $140 billion, remains unregulated in the United States.
Recently, Senators Cynthia Lummis and Kirsten Gillibrand collaborated to propose new legislation aimed at regulating stablecoins.
Under the proposed bill, payment stablecoin issuers would be required to meet reserve and operational standards, including the establishment of subsidiaries specifically for issuing stablecoins.
The bill characterizes payment stablecoins as digital assets pegged to the U.S. dollar intended for use as a payment or settlement method.
Issuers would be obligated to convert to dollars, and the asset itself would not be categorized as a security.
Non-depository trust companies registered with the Federal Reserve Board of Governors or depository institutions authorized as national payment stablecoin issuers would qualify to become issuers, with both state and federal regulators overseeing their activities.
The United Kingdom is also anticipated to implement regulations for stablecoins in the coming months, according to Dante Disparte, the global head of policy at Circle.
Meanwhile, Singapore has enacted formal legislation for the stablecoin sector.
The post Tether, Kraken-Backed Quantoz Payments Launch MiCA-Compliant Stablecoins appeared first on Cryptonews.
