STASIS, a European fintech company, provides greater operational transparency to build trust with its global clientele. The company claims that it intends to make its flagship product — EURS — the first stablecoin procured in the EU to have its reserves fully backed by cash. This development aims to address the rising concerns about the transparency and backing of stablecoin reserves, which have been previously raised by regulators and investors alike across the industry.
How STASIS EURO continues to lead the way in transparency
Stablecoins are cryptocurrencies pegged to a stable asset, such as the US dollar, euro, gold, or other traditional currencies. Unlike other cryptocurrencies, stablecoins are designed to minimize price volatility and provide a stable store of value. Moreover, these stable digital assets have become increasingly popular in recent years, particularly in the DeFi space, where they are used as collateral for loans, traded on exchanges, and used for payments.
However, the stability of stablecoins has been called into question due to the industry's lack of transparency and regulation. There have been instances where stablecoins have failed to maintain their peg, leading to significant losses for investors. The lack of clarity around stablecoin reserves has also raised concerns about the potential for fraud and
misuse. The Malta-based company has proactively addressed these issues by fully backing its stablecoin with liquid euro balances.
It’s worth noting that EURS is the first stablecoin team that fulfilled the upcoming MiCa regulations while providing instant liquidity for its holders. EURS is now bank run-resistant by 100%, a scarce feature in the stablecoin industry.
The team openly communicated their intentions with policymakers, lawmakers, and decision-makers. Unlike other stablecoins that may hold a combination of assets, such as cash and government bonds, STASIS has opted for a fully cash-backed stablecoin to ensure maximum transparency and security. This move is intended to provide greater transparency and safety for stablecoin users, ultimately contributing to the broader adoption of cryptocurrencies as a viable means of exchange and investment.
The era of negative interest rates is now over, and STASIS is proud to acknowledge that the company kept over 100 million euros with no negative impairment to token holders imposed on them during these unprofitable times. The change in the macro-financial climate within the euro allowed them to benefit from about 2.5% deposit facility rate of ECB interest rates, which tends to rise.
In fact, STASIS has been committed to transparency since its inception in 2018. It has taken a proactive approach to address concerns about the openness and backing of stablecoin reserves of EURS stablecoin by providing 4-stream verifications.
Furthermore, BDO conducted intermediate certification, ensuring that all the STASIS-held assets are in 100% liquid euro balances. It’s also worth mentioning that during most of the project's lifetime, cash reserves varied from 60% to 100%, thus reassuring investors of EURS credibility.
Zero conflicts of interests
The high road in business taken by the project team means that STASIS never used to promote EURS, selling them for 99 cents per euro (the GUSD case), did not distribute hundreds of thousands of assets to fake artificial trades (Argent-DAI and Bitstamp-EUROC giveaway cases come into mind), and did not bride yields in DeFi stimulating artificial TVL (EURT for example).
STASIS is the only issuer focused on the product's key characteristic—for the euro to correspond to the free market purchased amount of EURS.
The project team believes that providing greater transparency and security for stablecoin users will ultimately contribute to the wider adoption of cryptocurrencies as a viable means of exchange and investment.
Overall, STASIS' move to back its stablecoin with liquid euro balances entirely is a positive development for the stablecoin industry. This move should provide greater confidence and security for stablecoin users, which could ultimately lead to greater adoption and use of stablecoins in the broader cryptocurrency ecosystem.
Finally, STASIS is carefully monitoring the market, and if the interest environment allows, it may reconsider its 100% cash allocation.