Dutch fintech firm Quantoz Payments has secured backing from Tether, Kraken, and Fabric Ventures to introduce two new stablecoins: EURQ and USDQ. These tokens are fully compliant with the MiCA compliance for market trust, a regulatory framework established by the European Union to enhance transparency and security in the digital finance ecosystem.
Slated for release on Nov. 18, EURQ and USDQ are euro- and U.S. dollar-backed stablecoins, officially licensed as e-money tokens (EMTs) by the Dutch Central Bank (DNB). With reserves fully backed by fiat currency, these tokens aim to offer a reliable and regulated alternative for digital transactions within the European Economic Area (EEA).
Exchange Listings for Broader Access
Starting Nov. 21, Kraken and Bitfinex will list EURQ and USDQ, providing eligible users across Europe access to these stablecoins. The goal is to enable faster, more cost-effective, and transparent transactions for both businesses and individual users.
Advancing MiCA-Aligned Stablecoin Innovation
The launch of these stablecoins highlights progress in regulated crypto initiatives within the EU. By adhering to MiCA’s strict guidelines—such as full fiat backing and an additional 2% reserve held by Quantoz—EURQ and USDQ address key concerns about trust and stability in the digital asset space.
Fabric Ventures’ general partner, Anil Hansjee, commented in a press release that “Europeans are enthusiastic about how MiCA simplifies stablecoin issuance across the continent.”
Tether CEO MiCA Warning
While Tether has supported Quantoz’s issuance of these MiCA-compliant tokens, its CEO, Paolo Ardoino, has expressed reservations about certain aspects of the regulation. Ardoino has warned that MiCA’s requirement for stablecoin issuers to maintain at least 60% of their reserves in European banks could pose systemic risks.
He noted that banks could become vulnerable to financial instability, as they are often allowed to lend out up to 90% of their reserves, potentially exposing stablecoin issuers to cascading risks.
Norway’s Support for MiCA
On Nov. 9, Norges Bank, Norway’s central bank, voiced its support for the EU’s MiCA framework while assessing its potential impact on central bank digital currencies (CBDCs).
Kjetil Watne, project director at Norges Bank, acknowledged that MiCA provides a solid foundation for digital asset regulation but suggested that additional measures might be needed to ensure financial stability. Norway, a member of the European Economic Area, has yet to decide on the adoption of a CBDC but is exploring the possibility of integrating a CBDC-based cross-border payment system.
The launch of EURQ and USDQ under MiCA’s robust framework demonstrates Europe’s determination to lead in regulated crypto innovations while navigating challenges that come with increased regulatory oversight.
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