Tether to invest in Quantoz to support MiCA-compliant stablecoins

Tether will invest in Quantoz Payments to support the launch of euro- and US-dollar-pegged stablecoins EURQ and USDQ.

In an announcement made on November 18, Tether announced plans to invest in the Netherlands-based payments firm to facilitate the issuance of fiat-referenced e-money tokens.

Quantoz, licensed as an Electronic Money Institution by the Dutch Central Bank, launched two MiCA-compatible stablecoins on Monday, November 18, 2024. Crypto exchanges Kraken and Bitfinex are preparing to list EURQ and USDQ on November 21.

Quantoz leveraged Hadron by Tether to issue EURQ and USDQ coins, signaling Tether’s growing presence in the real-world asset tokenization market.

The launch adds to the $200 billion stablecoin market, of which Tether (USDT) has the largest share, valued at over $127 billion at the time of writing. Key players in the industry include Circle and Paxos, as well as new entrants like Ripple, all aiming to drive crypto and blockchain adoption through stablecoins.

Tether’s CEO Paolo Ardoino said the following about the investment in Quantoz:

“By supporting Quantoz and delivering technology solutions like Hadron by Tether, we are strengthening our commitment to expanding trusted, compliant financial tools that empower users and build trust across the digital ecosystem.”

In addition to Tether, Quantoz Payments also received investment support from venture capital firm Fabric Ventures and crypto exchange Kraken. EURQ and USDQ will be fully backed 1:1 by fiat reserves, the company stated in a press release.

Reserves will also include liquid financial instruments, such as government bonds, held in separate accounts in accordance with regulatory requirements. Additionally, the payments company will keep an additional 2% of reserves on its balance sheet to cover MiCA obligations to stablecoin issuers.

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