BÖSINGEN, Switzerland, Oct. 18, 2021 (GLOBE NEWSWIRE) — X8 AG (“X8 or the Company”) announces that the Company will commence with the issuance of the X8 Global Stablecoin under the Swiss Sandbox regime and it is expected to be available Q1 2022. Further, the Company has added key expertise to pursue a FinTech licence and provide leadership for organic corporate development. The purpose and use of the X8 Stablecoin have been designed and developed from the ground up to be fully compliant with the regulatory environment in Switzerland. X8 will be fully backed by 8 currencies (USD, EUR, JPY, GBP, AUD, CAD, CHF, and NZD). The stability of X8 is managed by its proprietary algorithmic risk management process which is designed to monitor currency fluctuations and adjust the weighting of the currency portfolio backing the X8 Stablecoin. This way, X8 remains relevant and adjusted to the ever-changing competitive landscape between the 8 currencies resulting in what the Company believes to be optimal stability with minimal liquidity risk. This is a world’s first feature for any Stablecoin. X8 should have an innate capacity to be bought and sold against any or all of the 8 fiat currencies.
To assist with the introduction and issuance of the X8 Stablecoin, the Company has engaged METI Advisory AG as Lead Advisor and a big four Swiss legal practice to pursue the FinTech licence. METI Advisory AG’ Managing Partner Dr. Mattia Rattaggi with 25-year experience in the financial industry, is considered an expert in digital finance and regulation. He has advised and carried out several fintech and crypto projects and is a regularly invited keynote speaker at global conferences. He will feature at the upcoming Redeye Fintech Day Conference on October 20, 2021.
Issuance of the X8 Stablecoin into the Swiss sandbox is a milestone for the X8 AG. The importance of the Swiss sandbox, is that it provides for an innovation space for fintech applications and their business models to be tested. It allows for a company, without the prior approval or review by the regulator (i.e. no licence requirement), to accept deposits from the public in an amount of up to CHF 1 million, regardless of the number of depositors. The deposits are not supervised by the regulator and they are not covered by the depositor protection regime. X8 AG will operate under the Swiss sandbox in compliance with AMLA and KYC provisions and affiliation to a self-regulatory organization. During Swiss sandbox, X8 deposits amounts shall not exceed the CHF 1 million limit. It is intended that during sandbox, all other benchmarks will be accomplished and exceeded, including capital reserves, user protection, compliance, and anti-money laundering requirements. This means that X8 is currently not subject to FINMA supervision and that the funds are not protected by the Swiss depositor protection system, until X8 has obtained the FinTech license.
The goal of X8 is to ultimately obtain a FinTech licence. Under a FinTech license, X8 would be authorized to accept deposits from the public up to a maximum threshold of CHF 100 million. These deposits are not invested and no interest is paid on them.
X8 AG founder and CEO Gregor Koželj, who is also an invited speaker at the upcoming Redeye Fintech Day Conference, commented:
X8 AG is a Swiss-based Fintech company owned by X8 Group Inc. Building on the successful ICO of the X8X utility token in 2018, the Company progressed with the development of the World’s first Stablecoin backed by 8 currencies. Through its regulatory compliant structure, X8’s goal is to become the Global Stablecoin most fit for international exchange by both institutional and retail users.
Based on its development of proprietary tools and platforms using global tech megatrends such as AI and Blockchain to create stability in value for financial market players, X8 focuses on three main areas which are; Professional portfolio risk management platforms, Stablecoins, and Algorithmic investment models used in asset management.
X8 AG is driven by the founder’s focus to bring compatibility between the traditional and the new decentralized financial landscape. The foundation of the Company is to operate in a regulatory compliant way.
Disclaimer The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. X8 Ag and X8 Group Inc. is under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise. The information contained herein is not for release, publication, or distribution, in whole or in part, directly or indirectly, in countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. No Regulatory body has reviewed or approved this release.
The recent collapse of cryptocurrency Terra is another reason to question why stablecoin regulation has been such a challenge in the US, says Noah Qiao, an attorney with Kirkland & Ellis. He says the answer may lie in stablecoins’ mixed uses. He proposes that single-use stablecoins could be a way to capture greater institutional adoption.
Circle Internet Financial, issuer of the dollar-pegged stablecoin USD Coin (USDC), is launching a new euro-pegged stablecoin Euro Coin (EUROC) on June 30th. Developers can already integrate with the Euro Coin smart contract, and institutional users can access EUROC on the launch date upon creating a free Circle account.
Dr. Thomas Moser, of the Swiss National Bank’s (SNB) regarding the potential competition between private sector stablecoins and government CBDCs, Dr. Moser is confident that both types of digital currency can coexist because CBDCs perform only very basic functions, while stablecoins can be tailored for many other uses.