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Quantoz Payments has partnered with Kraken, Tether and Fabric Ventures to launch MiCA-compliant EURQ and USDQ stablecoins in the EU, aiming for secure, efficient digital payments.
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Tether, Kraken, and Fabric Ventures are backing Dutch fintech company Quantoz Payments in the launch of two stablecoins, EURQ and USDQ, compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCA).
Set for release on Nov. 18, the euro- and United States dollar-backed tokens are licensed by the Dutch Central Bank (DNB) as e-money tokens (EMTs). These stablecoins, fully backed by fiat reserves, aim to provide a secure and regulated option for digital payments across the European Economic Area (EEA).
Kraken and Bitfinex are set to list EURQ and USDQ on Nov. 21, enabling access for eligible clients across Europe with the target to facilitate cheaper, faster and transparent transactions for both corporate and consumer use.
Related: Norway supports MiCA, considers CBDC for financial stability
MiCA compliance for market trust
The introduction of EURQ and USDQ marks a significant development in regulated digital finance within the EU, powered by MiCA’s framework to foster trust in stablecoin issuers.
The tokens align with MiCA’s requirements, which include 1:1 fiat backing and an additional 2% reserve held by Quantoz, providing transparency and mitigating risks associated with crypto payments.
In a press release shared with Cointelegraph, Anil Hansjee, general partner at Fabric Ventures, explained that “Europeans speak loudly about MiCA making stablecoin issuance seamless in Europe.”
Related: SEC seeks dismissal of Kraken defenses in ongoing legal dispute
Tether CEO MiCA warning
Despite backing the Dutch fintech company’s issuance of the two MiCA-regulated stablecoins, Paolo Ardoino, the CEO of Tether, previously said that the regulatory framework could introduce “systemic risks” for banking.
Ardoino’s concerns stem from the MiCA requirement that stablecoin issuers will have to hold at least 60% of their reserves in European banks — giving cause for concern regarding loans.
This provision, he warned, could introduce vulnerabilities if banks, which may loan up to 90% of their reserves, face financial instability.
Related: Tether mints $1 billion USDt on Tron, pays zero fees — Arkham
Norway’s support for MiCA
The Norwegian central bank, Norges Bank, endorsed the EU’s MiCA rules on Nov. 9 while evaluating its potential to support a central bank digital currency (CBDC).
Kjetil Watne, project director of the bank, told Cointelegraph in an interview that the country welcomed the MiCA framework but was still considering whether “additional regulations” were required to ensure financial stability.
Norway is part of the European Economic Area and, as such, aligns closely with EU regulations like MiCA, and though it has “not yet decided” on its direction with CBDC issuance, it is considering the implementation of a “CBDC-based cross-border payment system.”
Magazine: Legal issues surround the FBI’s creation of fake crypto tokens
This article first appeared at Cointelegraph.com News
