In a strategic move to enhance its presence in the European market, Tether has announced plans to invest in Quantoz Payments, a Dutch fintech company, to support the launch of two new stablecoins—EURQ and USDQ. This investment comes as part of Tether’s commitment to developing compliant financial solutions that align with the EU’s Markets in Crypto-Assets Regulation (MiCAR).
The announcement, made on November 18, 2024, highlights Tether’s intention to facilitate the issuance of these euro and U.S. dollar-pegged stablecoins through Quantoz’s advanced payment platform. Quantoz is licensed as an Electronic Money Institution by the Dutch Central Bank, ensuring that its operations adhere to stringent regulatory standards. The stablecoins are designed to provide secure and regulated digital payment solutions across the European Economic Area (EEA).
Tether’s investment aims to leverage its innovative Hadron tokenization platform, which will be utilized for the issuance and management of EURQ and USDQ. This collaboration signifies Tether’s ongoing efforts to integrate real-world asset tokenization into its business model, reinforcing its position as a leader in the stablecoin market.
The new stablecoins, EURQ and USDQ, are set to be fully backed 1:1 by fiat reserves, including liquid financial instruments such as government bonds. This backing is crucial for maintaining trust and stability in the volatile cryptocurrency market. The tokens are expected to be listed on major exchanges, including Kraken and Bitfinex, on November 21, 2024.
Tether CEO Paolo Ardoino emphasized that this investment not only supports Quantoz but also reflects Tether’s dedication to expanding reliable and compliant financial tools that empower users. He 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.”
This investment comes at a time when Tether faces increasing regulatory scrutiny regarding its flagship product, USDT. The company has been under pressure in Europe due to concerns over compliance with MiCAR regulations. By investing in Quantoz and launching MiCAR-compliant stablecoins, Tether aims to address these regulatory challenges while positioning itself competitively against other players in the market, such as Circle and Paxos.
The introduction of EURQ and USDQ is anticipated to enhance competition within the euro-backed stablecoin sector, which has been dominated by newer entrants like Circle’s EURC and Société Générale’s EURCV. With these developments, Tether is not only expanding its product offerings but also reinforcing its commitment to regulatory compliance in a rapidly evolving financial landscape.
