Tether is investing in Quantoz Payments to support the launch of MiCA-compliant stablecoins, EURQ and USDQ. The aim of these Ethereum-based EMTs (E-Money Tokens) is to regulate digital financial transactions across Europe while improving speed and efficiency.
The announcement comes as Tether aims to improve its involvement in the digital asset industry and emerge as a compliant player.
“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,” says CEO of Tether, Paolo Ardoino.
Quantoz is taking on Hadron, a tokenization technology of Tether
The stablecoins EURQ and USDQ are MiCAR (Markets in Crypto-Asset Regulation) compliant. This means that they are fully regulated and can be used as an alternative to digital transactions involving dollars and euros.
According to the press release, Quantoz has received backing from Fabric Ventures, Kraken and Tether. Kraken recently made adjustment to its offerings in Europe due to tougher rules under MiCA. The exchange also delisted Monero (XMR) to become compliant in the region. Meanwhile, Tether is the issuer of the largest stablecoin. The stablecoin issuer has said that it will leverage its Hadron technology platform for the launch of the 2 new stablecoins. The platform supports the creation and management of tokenized assets. In a way, it manages tokenization’s complete lifecycle, from the start till the end. It contains various tools for issuance, KYC (Know Your Customer), KYT (Know Your Transaction), compliance, and risk management.
The platform can also connect tokenized assets with centralized exchanges and secondary markets. This enables tokenization across various sectors like real estate, loyalty points, and equities beyond just stablecoins.
Tether says more public users interested in Hadron
The launch could allow EURQ and USDQ to become a quick and low-cost digital system for euro and dollar transactions across European markets. Therefore, it will offer another alternate to traditional banking systems that carry payments and remittances.
With the backing, Tether is showcasing itself as a regulated issuer across Europe. It says, “Through investments in initiatives like Quantoz, Tether is redefining the digital economy and opening doors to greater economic opportunity and broader financial inclusion.”
Dutch company Quantoz is reportedly the first user of Hadron. Tether says in its latest release that it is receiving interest from other institutions looking to tokenize stocks, bonds, real estate, and even loyalty points among other assets.
In the final quarter of 2024, Markets in Crypto-Assets (MiCA) regulation is in the final phase of implementation with stablecoin rules also gaining steam. MiCA brings some strict requirements for stablecoin issuers.
All approved issuers in Europe will have to maintain a 100% fiat reserves to back stablecoins. They will also need additional liquidity safeguards, ensuring redemption rights, and adhering to governance and reporting standards.
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