This week, Dutch technology supplier Quantoz and Bank Frick, a bank from Liechtenstein with a focus on regulated blockchain banking, will jointly launch a software solution for companies to issue their own digital stablecoin. The third party to join the cooperation is the Swiss branch of BDO, one of the leading auditors worldwide. The joint software solution ‘StableCoin as a Service (SCaaS)’, will be PSD2 compliant enabling parties to issue their own stablecoins and integrate these into their existing systems. This allows parties and end customers to benefit from the security, speed and stability of a payment ecosystem, based on digital tokens.
Utrecht (NL) – Starting this week, Quantoz and Bank Frick will provide companies with the opportunity to issue their own stablecoin within a closed loop ecosystem. The StableCoin as a Service (SCaaS) solution is based on Quantoz‘ proven NEXUS technology. NEXUS is a Software as a Service technology for companies to easily integrate blockchain technology into their existing financial applications.
”Our SCaaS solution is ideal for parties processing large volumes of payments on a daily basis, such as retailers and merchants“, explains Julien Hawle, head of the Blockchain Lab at Bank Frick. ”With our SCaaS solution, participants of a payment ecosystem benefit from lower transaction costs. The SCaaS turnkey solution ensures the system can be seamlessly integrated without the need for technical expertise and high development costs“.
Swift integration into existing processes
The integration of the SCaaS solution into existing business processes and systems is carried out in line with legal requirements. Since the SCaaS system is a closed system, issuers of digital tokens in the EU are not required to have an e-money license. This allows companies to become publishers of their own stablecoin and to provide their trading partners and end customers with a closed payment ecosystem based on digital tokens. These stablecoins are linked to fiat currencies such as the euro or the dollar and are either added to or withdrawn from the system in a 1:1 ratio, ensuring price stability.
Lower transaction costs and enhanced customer loyalty
With the NEXUS technology, the issuer of the stablecoin does not incur any internal development costs. In turn, companies and consumers benefit from the lower transaction costs made possible by the SCaaS ecosystem. Additionally, the SCaaS ecosystem enables companies to create a lock-in effect for their customers, for example by setting up a loyalty program.
Compliance and safety first
Since transactions are always transparent and traceable, the SCaaS solution allows for fully verifiable accounting of all fiat and token payments. Thanks to the intuitive user interface, no technical expertise is required and operational risks are minimized.
BDO, one of the leading audit, trust and consulting firms in Switzerland, is responsible for the audit. “The audit report, which is based on the globally recognized ISAE 3000 standard, confirms the 1:1 backing of the issued tokens by the deposited fiat currency. The ability to generate and periodically publish a voluntary audit report enhances confidence for the involved parties when issuing a stablecoin, says Markus Hug, head IT-Consulting and Audit of the Financial Services department and head of Fintech at BDO Switzerland. He is convinced trust is an essential building block for this innovative service.
The offering of a closed ecosystem for transactions based on digital tokens, with seamless integration into business, compliance and accounting processes, is unique.The technical infrastructure for the SCaaS solution is provided by Quantoz, a technology provider based in Utrecht. In addition, Quantoz takes care of the technical support and individual adjustments for the issuers. The necessary banking services, such as the safe custody of the deposited fiat funds, is offered by Bank Frick. Henri de Jong, co-founder and Chief Business Development Officer of Quantoz, is convinced of the joint SCaaS offering: “Quantoz has always focused on the intersection between the classic financial world and blockchain technology. Therefore, the cooperation with Bank Frick and BDO was a logical step for us in the further development of our products and services. We are proud of our joint development and the strong partnership behind it”.