Visa approves Quantoz for European stablecoin debit card issuance
The Netherlands-based electronic money institution will serve as BIN sponsor for fintech companies, connecting regulated stablecoins in dollars and euros to traditional payment card infrastructure.
Quantoz Payments, a Netherlands-based payments firm, has secured principal membership status with Visa, granting the company authority to provide virtual debit cards supported by its regulated electronic money tokens while sponsoring third-party financial technology firms that want to deliver stablecoin-connected payment solutions throughout Europe.
Through this arrangement, Quantoz gains the capability to provide Visa-branded virtual payment cards linked to holdings in its USDQ, EURQ and EURD electronic money tokens, facilitating user spending of these assets for online purchases, retail transactions and through digital wallet applications.
Additionally, the firm will function as a BIN sponsor, providing fintech collaborators with the ability to integrate card issuance capabilities directly within their own platforms.
The company operates under an Electronic Money Institution license granted by the Dutch central bank and produces its tokens as regulated electronic money throughout the European Economic Area, maintaining reserves at a 1:1 ratio in protected accounts via a bankruptcy-remote foundation arrangement. According to the company, it must also hold a minimum of an extra 2% reserve buffer within its balance sheet.
Neither Quantoz nor Visa revealed a specific launch timeline for the initial card programs or identified any fintech collaborators that will leverage the infrastructure. The collaboration targets the European market specifically.
Big payment networks racing to integrate stablecoins
While major payment networks vie to incorporate stablecoins into traditional finance systems, Visa has enhanced its offerings through fresh settlement integrations and international pilots, whereas Mastercard is considering acquisitions to fast-track its onchain infrastructure approach.
During July, Visa expanded its stablecoin settlement platform to accommodate Global Dollar (USDG), PayPal USD (PYUSD) and Euro Coin (EURC), simultaneously adding compatibility with the Stellar and Avalanche blockchains, permitting institutions to transfer supported stablecoins across these networks or exchange them for fiat currency through Visa's infrastructure.
Come September, the organization introduced a Visa Direct pilot program allowing banks to pre-fund international payments using USDC and EURC, designed to facilitate near-instant payouts while minimizing the requirement to hold capital in advance.
The subsequent month, Visa announced plans to extend support to four stablecoins across four distinct blockchains, with CEO Ryan McInerney informing investors that Visa intends to continue expanding its stablecoin capabilities following heightened activity during the previous fiscal year.
In contrast to Visa's expansion via pilots and network integrations, Mastercard seems to be taking a more acquisition-focused strategy to strengthen its stablecoin infrastructure.
Instead of developing each onchain component from within, Mastercard is assessing the acquisition of a turnkey provider that could be incorporated into its current payments network.