As stablecoins continue to gain popularity, the Netherlands-based fintech firm Quantoz aims to secure a foothold in the European market by rolling out regulatory-compliant stablecoins pegged to the euro (EURQ) and the U.S. dollar (USDQ).

The tokens, which will be issued on the Ethereum blockchain, are fully backed by fiat reserves and liquid financial instruments such as government bonds, the company reported on Monday.

Quantoz has received the Electronic Money Institution (EMI) license from the Dutch Central Bank, essential for stablecoin issuers in the EU. The firm has also attracted investments from Kraken and Tether, although specifics about the funding were not disclosed.

EURQ and USDQ will debut on Bitfinex and Kraken, available for trading by eligible users starting Thursday.

Stablecoins, which are pegged to fiat currencies, have seen their market grow to a $180 billion asset class within cryptocurrencies, becoming crucial for trading liquidity and increasingly favored for payments and remittances due to their efficient blockchain settlements.

Quantoz's launch comes at a pivotal moment as the EU prepares to enforce comprehensive rules (MiCA) for cryptocurrency businesses by the end of this year. MiCA will require stablecoin issuers to comply with regulations or risk being removed from a market of 450 million consumers. While Circle, the issuer of USDC, indicated it meets these regulatory requirements, Tether has openly criticized the new legislation and is still in the process of obtaining necessary licenses.

"There's a gap in the stablecoin market here in Europe, and we see that as an opportunity," said Arnoud Star Busmann, CEO of Quantoz Payments. "We believe our technology and regulatory adherence position us well to address that need, especially with partners like Kraken and Tether."

Stablecoins can significantly benefit transactions in areas where traditional banking fails, such as high-volume, low-value trades. Quantoz also engages in tokenization, which entails creating digital versions of traditional financial assets. This integration can provide businesses with more efficient treasury management due to the near-instantaneous settlement that stablecoins enable.

"We are building a comprehensive ecosystem for various applications, from daily transactions to intricate financial dealings," Busmann stated.