Moneyfold’s Euro-backed tokens go live on Eidoo
We are thrilled to announce our new integration with cryptocurrency wallet Eidoo to offer euro-backed stablecoins.
In 2018, Moneyfold graduated from a regulatory sandbox promoted by the Financial Conduct Authority in the United Kingdom, achieving FCA approval for the issuance of fiat-backed tokens on the Ethereum blockchain — regulated electronic money on a public blockchain.
Today, Moneyfold integrates with Eidoo to launch a beta version for eligible users to experience Euro stablecoins and atomic swaps directly from Eidoo’s wallet app.
Stablecoins come in different varieties depending on what type of asset is backing them. Moneyfold specialises in the so called fiat-backed stablecoins — that is Ethereum-based tokens pegged to the value of national currencies like the British Pound and the Euro. Implemented using the ERC20 standard, the Moneyfold Euro token (EURM) is a cutting-edge stablecoin offering the best of both worlds: the flexibility of a digital asset on the one hand and the guarantees of a regulated financial instrument on the other.
The partnership with Eidoo represents our dedication to bringing stablecoins closer to mainstream adoption. Eidoo’s mission is to make digital assets accessible to the larger public, by providing a simple yet secure blockchain experience through its products. In addition to a variety of cryptocurrencies, the wallet is adding support for fiat-backed tokens, gold stablecoins and security assets.
More than a peg, that’s actual electronic money
Operating under a Small E-Money financial services licence, Moneyfold backs its tokens 1-to-1 with customer deposits that are held and safeguarded in segregated accounts at approved credit institutions. For every EURM token (euro stablecoin) that exists on the blockchain, there is a real euro in reserve that belongs to the client. In other words, if something were to happen to Moneyfold, those reserve funds still belong to the customers and can be claimed by them.
The EURM token is more than yet another digital credit note representing a physical asset in the real world, it is actual electronic money as set out by the EU’s Electronic Money Directive.
It exists in the financial system as a store of monetary value. Users have access to daily proof-of-funds and can directly verify that all stablecoins in circulation are fully backed by reserves.
Moneyfold fiat-backed tokens are safeguarded in segregated bank accounts so that clients’ funds are held separately from the company’s operating funds. There is no commingling of funds — this way customers interests are protected. EURM owners are able to redeem their tokens against the underlying funds at any time.
Moneyfold issues new EURM tokens as soon as a euros are deposited in the relevant bank account, and redeemed EURM tokens are destroyed when those funds are withdrawn, so that a full reserve is preserved at all times.
Euro and beyond
Through their partnership Moneyfold & Eidoo will continue to expand their product offering to other currencies, enabling a more integrated experience between banking and blockchain-based digital assets.