Tether invests in Dutch firm to launch MiCA-compliant stablecoins News ▸ EU ▸ Stablecoins
Tether invests in Dutch firm to launch MiCA-compliant stablecoins
The investment in Quantoz showcases Tether's strategic move to engage with Europe's stringent regulations through a new stablecoin launch.
2 min read
Updated: Nov. 18, 2024 at 5:33 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tether has announced plans to invest an undisclosed amount in Quantoz, a Dutch fintech company, to assist with the introduction of two new stablecoins — EURQ and USDQ, according to a Nov. 18 statement.
Quantoz, which operates under a license from the Dutch Central Bank (DNB), plans to issue these stablecoins using Tether’s new Hadron tokenization platform. These tokens are designed to comply with the EU’s Markets in Crypto-Assets Regulation (MiCA), ensuring alignment with stringent regulatory standards.
EURQ and USDQ will be backed by fiat reserves and classified as e-money tokens under DNB rules. Their primary goal is to provide a secure and regulated digital payment solution across the European Economic Area (EEA). Leading crypto exchanges Kraken and Bitfinex are set to list these stablecoins on Nov. 21.
Tether’s involvement highlights its strategic focus on advancing regulated financial solutions in Europe. Paolo Ardoino, the stablecoin issuer CEO, stated:
“By supporting Quantoz and bringing technology solutions like Hadron by Tether, we reinforce our dedication to expanding reliable, compliant financial tools that empower users and build trust across the digital ecosystem.”
Hadron is designed to provide advanced capabilities for token issuance, compliance, risk management, and ecosystem monitoring across blockchain networks and centralized exchanges.
Response to competitive pressure?
Tether’s move comes as it faces regulatory challenges with USDT in Europe. USDT is the largest stablecoin by market cap and has faced delisting threats in Europe due to its non-compliance with MiCA
MiCA’s strict reserve requirements have created significant hurdles, which Ardoino claims could present systemic risks to banks and digital assets.
So, Tether’s investment in Quantoz could be a calculated effort to adapt to this regulation. The step positions the company to compete in a market primarily dominated by Circle’s EURC and Sociéte Générale’s EURCV, which collectively account for over 60% of the euro-backed stablecoin sector.
Tether did not respond to CryptoSlate’s request for additional comment as of press time.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Societe Generale
Societe Generale, often abbreviated as SocGen, is a French multinational banking and financial services company.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.
