Dutch central bank authorises Qivalis to issue euro tokens

Qivalis has won authorisation as an electronic money institution from the Dutch central bank, clearing a key step toward issuing a euro-backed crypto token. The company said in an announcement published by Disruption Banking on Oct. 14 that it is now under ongoing supervision by De Nederlandsche Bank (DNB) and eligible to issue euro-denominated electronic money tokens.

Qivalis is based in Amsterdam and backed by 37 European banks across 15 countries. Its planned token is a stablecoin, a crypto asset designed to track the value of a currency—in this case, the euro.

What does the licence let Qivalis do?

The licence makes Qivalis eligible to issue its token, but it does not mean the token is already available. The company said issuance will follow the requirements of the European Union’s Markets in Crypto-Assets Regulation, known as MiCA, and the publication of a white paper, a document setting out details of the token.

Qivalis said it plans to begin issuing the token within the next few months. Its authorisation makes it an electronic money institution, a regulated firm allowed to issue electronic money. The company said the approval is a key condition for issuing its token.

MiCA governs crypto assets in the EU. CoinDesk’s report on the approval says holders of electronic money tokens can redeem them at face value at any time, and that MiCA does not allow them to pay interest.

How will Qivalis distribute the token?

Qivalis plans to distribute its token through eligible partners, including banks, exchanges, payment service providers and financial market infrastructure firms. It describes this as a business-to-business-to-customer model, meaning it will work through other firms rather than distribute directly to individuals.

That approach puts banks and payment companies between Qivalis and people or businesses using the token. CoinDesk reported that the token could let those firms transfer euros using blockchain technology, a shared digital record system.

The approval does not confirm which banks will use the token or how much money may move through it. Qivalis said its issuance remains subject to MiCA requirements and publication of the white paper. Its plan is to bring a regulated euro token to market through financial partners, with the launch expected in the coming months.

References

• announcement published by Disruption Banking — disruptionbanking.com
• CoinDesk’s report on the approval — coindesk.com