Source: Ambcrypto, originally published on .
Last month was filled with allegations against Tether over their USD Tether stablecoin. Over numerous accusations of the coin not being backed up by USD in a 1:1 ratio, many alternatives have emerged.
The European space is capitalizing on this market, with a financial tokenization platform known as STASIS being at the forefront. The company recently released a stablecoin backed to the Euro known as EURS.
Stablecoins are digital assets, usually tokens, that are backed up in a 1-to-1 ratio to fiat currencies. Tether, for example, has USD Tether backed up to the US Dollar. With a supply of 3,080,109,502 tokens, Tether is required to hold $3,080,109,502 in USD in their bank. This ensures that the price of the token is always $1.
Stablecoins are introduced into the market to provide liquidity for cryptocurrency trades. Most exchanges which do not have licenses to engage in crypto-to-fiat trading utilize USDT for liquidity between cryptocurrencies and fiat.
The token is built on the EIP-20 standard for Ethereum, and the company claims that it is backed 1:1 by the Euro. Notably, EURS has started trading on London-based exchange platform DSX.
The company is working on obtaining a Maltese license, which is significant considering recent regulatory breathing space in the country. Earlier this month, the Maltese government passed three bills into law that ensured transparent regulatory principles on digital assets. The bills are aimed at encouraging the growth and establishment of cryptocurrency operations in the island country. On this, Silvio Schembri, Minister for Financial Services, stated:
“The Government of Malta has been working diligently and progressively to provide legal certainty to an industry that is currently unregulated. We, therefore, welcome any blockchain initiatives such as STASIS that while being innovative, will still respect and encourage compliance and we look forward to the company applying for a licence under our DLT regulatory framework.”
The token was developed to optimize trading for European institutional investors in the cryptocurrency space. It aims to reach a volume of $500 million by the end of this year. The CEO of STASIS, Gregory Klumov, said:
“EURS bridges the gap between traditional finance and the crypto-economy. While cryptocurrency trading is currently dominated by individual and retail investors, STASIS and EURS will pave the way for institutional investors to enter the game and begin allocating capital – that’s what’s needed to take the industry to surpass the trillion dollar mark.”
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