Tether (USDT) Backs Quantoz Payments to Launch Euro and US Dollar-Pegged Stablecoins, EURQ and USDQ

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

Cryptocurrency stablecoin issuer Tether plans to invest in Quantoz Payments to enable the launch of the EURQ and USDQ stablecoins, pegged to the euro and U.S. dollar, respectively.

In an announcement on Nov. 18, Tether disclosed its intention to inject funds into the Netherlands-based payments company to facilitate the issuance of the fiat-pegged e-money tokens.

Quantoz, which holds an Electronic Money Institution license from the Dutch Central Bank, launched the two MiCA-compliant stablecoins on Monday, Nov. 18, 2024. Cryptocurrency exchanges Kraken and Bitfinex will reportedly list EURQ and USDQ on Nov. 21.

Quantoz utilized Hadron by Tether to issue the EURQ and USDQ coins, highlighting Tether’s expanding footprint in the market for real-world asset tokenization.

The launch adds to the growth of the $200 billion stablecoin market, where Tether (USDT) boasts the largest slice, valued at over $127 billion at the time of writing. Key players in the sector include Circle and Paxos, while new entrants like Ripple aim to bolster crypto and blockchain adoption through stablecoins.

Commenting on the investment in Quantoz, Paolo Ardoino, chief executive officer of Tether, said:

“In supporting Quantoz and contributing technology solutions like Hadron by Tether, we reaffirm our commitment to advancing accessible, compliant financial instruments that empower users and instill trust throughout the digital realm.”

Quantoz Payments has also secured investment from Fabric Ventures, a venture capital firm, and Kraken, a cryptocurrency exchange, according to a company press release. EURQ and USDQ will be fully backed 1:1 by fiat reserves, the firm stated.

Reserves will also include liquid financial instruments, such as government bonds, held in segregated accounts as per regulatory mandates. The payments company will further maintain an additional 2% of reserves on its balance sheet to meet MiCA obligations for stablecoin issuers.