STASIS Welcomes A New Player to the Web 3 Stablecoin Arena
“Take the high road — it’s never crowded” — long term investor Warren Buffet
The need for local balance-sheet currency stablecoins, procured locally, is severely underestimated on the global cryptocurrency frontier.
The ongoing developments in the stablecoin field over the last five years & competitiveness has resulted in the spawning of hundreds of different “stable” digital assets. It is undeniable that the foundation of future fintech solutions can only be built with more “stable than coin” products, which are becoming “a last mile” between users and the emerging field of Web 3 applications. For a callow user, it’s getting harder to differentiate these products, and some allocations end up in a loss of capital.
With the recent event of Circle’s euro-backed stablecoin launch, STASIS welcomes a new player with similar values to further expand the euro-denominated market segment. This launch confirms STASIS’ strategic positioning and demonstrates the upside of the euro-backed stablecoin market, particularly in the new cycle of rising interest rates. We anticipate this move will help the euro-stablecoin market to increase in terms of a number of use cases and a total value transferred. There are many reasons for this, and we are happy to delve into the details.
Understanding the STASIS EURO (EURS) differentiation
The euro segment of the stablecoin market has seen very few competitive fintech products. Given that global user base has just started climbing their learning curve in understanding the risks behind these products, many stablecoin companies have tried to penetrate the market and failed to achieve perceptible adoption.
We feel it is important to objectively inform the stablecoin community about the properties and risks of each euro digital asset product that can be trusted with one’s wealth.
Why STASIS EURO?
- STASIS EURO (EURS) is proudly procured and operated in the European Union;
- STASIS is the only stablecoin issuer in the world (so far) that can hold collateral with the central bank;
- EURS was the pioneer to kick off the stablecoin transparency race bringing in Big4 auditors to do frequent checks of the issuer’s balance sheet since 2018;
- Issuer’s allocation of collateral is published daily in the form of statements from licensed financial intermediaries, holding STASIS accounts;
- STASIS euro-as-a-service infrastructure runs on a proprietary back-end with whitelabel capacity;
- The largest addressable market: Both institutional and individual accounts are available to STASIS customers from 175 countries vs Circle’s 86 countries* and institutional accounts only;
- EURS is the only “pure” euro stablecoin that bears neither legal, nor collateral, nor banking risks outside of the EU.
What defines EURS
Starting with the properly designed stablecoin concept back in 2017, the STASIS Team has been bootstrapping the project by taking the “high road”. The company can be called a true pioneer of stablecoin initiatives in Europe. We helped decision-makers climb the learning curve by assisting in the creation of the crypto-regulation frameworks. Our team consulted several government agencies in Europe and issued a book on crypto regulation in 2018 and an updated 2nd version in 2019, respectively. STASIS was a part of the expert INATBA task force and voiced pros and cons in drafting the European framework for crypto-assets in 2020. By 2022, a less-crowded “high road” path has yielded tangible results:
- We were asked to present our ideas on the forthcoming EU CBDC design & implementation in an ECB survey, and as a result, EURS became the stablecoin mentioned in the ”2022 role of euro” ECB report and in the “Taming Wildcat stablecoins” by the U.S. Federal Reserve and Yale University.
- EURS product got traction and grew into the biggest non-usd stable asset, tapping into different Layer-1 blockchains as customers: XRP, XinFin, Algorand with more in the works.
Undoubtedly, there is an ancient trend of importing American fintech products & acceptance in the EU: Facebook, Netflix, LinkedIn, Twitter, Instagram, WhatsApp, Telegram, Uber… just to name a few — this could be a topic for a separate discussion, which we will not touch in this article.
While in everyday transactions the population in the Eurozone naturally relies on their balance sheet currency, in digital asset realm some of them are forced to use dollar-denominated products. We are confident, that all EU-based customers would appreciate using a product that is procured locally. STASIS has been committed to the EU market from the very beginning: founding a European company with a local team and the use of banking services, capital markets and the legal infrastructure of the EU zone.
Go ahead and experience our newly-released onboarding process to try bridging your IBAN to your blockchain address via EURS for yourself!
IRS and AML5D
It should be noted that transactions through dollar accounts in dollar banks for Americans, United States-based companies or organizations that have a representative office or substance in the US, tend to receive easier and hassle-free compliance than from the rest of the world, even for European residents.
The difference lies in the European and the U.S. tax systems. For a client that interacts with the U.S. dollar within the country, there is a “second line of defence” in a form of IRS — tax reporting and liability of unlimited duration. Since Europe does not have a single body of such magnitude and such power, transaction screening on the financial system level is tighter and more demanding on client documentation.
By choosing EURS, the user gains exposure to pure digital euro, unchained from U.S. regulatory risks as neither STASIS company has any USD exposure nor accounts denominated in this currency.
Staying exempt from conflict of interest.
Due to simplicity of onboarding, reliability of jurisdiction, and quality of counterparties, we have chosen Swiss-based SCB AG to delegate the EURS market’s facilitation. No bank has yet refused to send/receive funds against this FINMA-licensed institution.
STASIS treats possible conflicts of interests very carefully, and it was a conscious team’s decision to follow the applicable law — in the event of a full backward audit, we are confident that all transactions can be properly reconciled. Sooner or later there will be some EU regulation present — and STASIS will be the first to comply with forthcoming requirements.
When a euro stablecoin is issued by a U.S.- based entity using the U.S. legal and financial infrastructure, the risks of U.S. legislation multiply by European ones. When risks multiply, the resulting risk becomes the risk squared.
The general user may not be aware of the amount of risks involved when entering the territory of this emerging digital asset class. There are more than a dozen euro stablecoins on the market nowadays. By choosing EURS, you can be sure that you are protected from pitfalls in case of a known risk events. The STASIS team watches your back. EURS will always offer you a piece of stability in this volatile crypto environment.
At the end of the day, a user always wins. We are eager to strive for competitiveness that will contribute to the development of a better cryptocurrency experience.
Our native STASIS Wallet will support EUROC soon as well!
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