According to a statement on November 18, Tether announced plans to invest an undisclosed amount in Dutch fintech company Quantoz to support the introduction of two new stablecoins (EURQ and USDQ).
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 be compliant with the EU's Markets in Cryptoassets Regulation (MiCA), ensuring alignment with strict regulatory standards.
EURQ and USDQ are backed by fiat reserves and are classified as e-money tokens under DNB rules. Their main goal is to provide secure and regulated digital payment solutions across the European Economic Area (EEA). Major cryptocurrency exchanges Kraken and Bitfinex plan to list these stablecoins on November 21st.
Tether's involvement highlights the company's strategic focus on advancing regulated financial solutions in Europe. Paolo Ardoino, CEO of the stablecoin issuer, said:
“By supporting Quantoz and introducing technology solutions like Hadron by Tether, we strengthen our commitment to expanding trusted and compliant financial tools that empower users and build trust across the digital ecosystem. I will.”
Hadron is designed to provide advanced capabilities for token issuance, compliance, risk management, and ecosystem monitoring across blockchain networks and centralized exchanges.
Responding to competitive pressure?
Tether's move comes as it faces regulatory challenges regarding USDT in Europe. USDT is the largest stablecoin by market capitalization, but it is under threat of delisting in Europe as it is not MiCA compliant.
MiCA’s strict reserve requirements create significant hurdles, which Ardoino argues could pose systemic risks for banks and digital assets.
Therefore, Tether's investment in Quantoz may be a calculated effort to adapt to this regulation. This move puts the company in a position to compete in a market primarily dominated by Circle's EURC and Sociéte Générale's EURCV, which together account for more than 60% of the euro-backed stablecoin sector.
tether did not respond crypto slate Additional comments are being sought at the time of writing.
