Quantoz Payments, a “regulated” issuer of electronic money tokens that are designed to be compliant with MiCA, announced the expansion of its stablecoins EURQ and USDQ to the Algorand (ALGO) blockchain.
Algorand-based DeFi platform Folks Finance will offer trading pairs for EURQ and USDQ, providing “liquidity for these regulated euro and dollar denominated assets across the ecosystem.”
Stablecoins have grown popular for blockchain-based payments and applications, with an “overall market cap of more than 220 billion (Statista).”
As more stablecoins arrive on the Algorand blockchain, more products and services will become available “to users, developers and enterprises who use the network to power applications in sustainability, traceability, public services, real-world tokenization (RWA).”
Stablecoins are important for the use of tokenized real world assets, and Algorand’s ability to “allow atomic swaps between stablecoins and RWA tokens enables the instant, and low-cost exchange of these assets.”
Folks Finance is said to be one of the largest DeFi protocols on Algorand, offering lending, borrowing, and liquid staking services “for ALGO and other assets.”
USDQ and EURQ will be available to “deposit for yield, collateralize, and borrow against, all in a permissionless manner through Folks’ smart contracts.”
Built with security as the “priority,” Folks’ smart contracts have been “audited more than 7 times, with each feature being examined by two auditors.”
Folks is looking forward to the future of DeFi on Algorand and “regards the stablecoin expansion from Quantoz as a step forward.”
Quantoz’s EURQ and USDQ stablecoins are designed to be “fully compliant with the EU’s Markets in Crypto-Assets Regulation (MiCA) and adhere to strict financial safeguards.”
To ensure regulatory compliance and fund protection, all e-money tokens are 102% overcollateralized, with reserves “held in a bankruptcy-remote entity (Stichting Quantoz) to ensure full compliance with MiCA’s safeguarding requirements.”
Arnoud Star Busmann, CEO of Quantoz Payments said:
“Expanding EURQ and USDQ beyond Ethereum to Algorand, one of the other top tier blockchains, marks a major step in making regulated e-money tokens more accessible across blockchain ecosystems. Algorand’s proven security, low fees, and institutional focus make it the ideal blockchain for us to scale our stablecoin offering and meet growing demand.”
Staci Warden, the CEO of Algorand Foundation, added:
“Having Quantoz’s MiCA-compliant stablecoins on Algorand is a strong validation of our blockchain’s ability to support regulated financial products. The addition of EURQ and USDQ opens new opportunities for businesses and users to securely and easily transact with digital money.”
Founded in 2021, Quantoz Payments issues USDQ, “a US dollar-backed E-Money Token (EMT), and two euro-backed EMTs, EURQ and EURD, within the European Economic Area.”
These EMTs aim to facilitate “fast, cheap, transparent, and secure blockchain technology-based payments.”
Incorporated in the Netherlands, the company says it holds “an Electronic Money Institution (EMI) license from the Dutch supervisory authority, the Dutch Central Bank.”
The funds received in exchange for the e-money tokens are held by Stichting Quantoz, a “bankruptcy remote” entity, which “ensures that these funds are safeguarded following the requirements of MiCAR.”
Quantoz Payments and Stichting Quantoz are reportedly said to be “subject to prudential supervision by DNB.”