• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

How MiCA Will Transform Euro-Denominated Stablecoins Market

user avatar

by Giorgi Kostiuk

4 months ago


The European Union’s new Markets in Crypto Assets (MiCA) regulations, effective December 30, aim to bolster euro-denominated stablecoins.

MiCA's Impact on Stablecoins

Analysts led by Nikolaos Panigirtzoglou at JPMorgan noted that under MiCA, only compliant stablecoins will be available as trading pairs on regulated markets. This will lead to a shift in the offerings of exchanges within the EU. The regulations require stablecoin issuers to hold significant reserves in European banks and obtain trading licenses.

Divergence in Stablecoin Market

These regulations have led to a divergence between compatible stablecoins like Circle’s EURC and non-compatible ones like Tether’s EURT, which have faced operational challenges. Tether announced in November that it would phase out its EURT stablecoin, allowing users to use the tokens for up to 12 months. The decision led to Tether’s USDT being delisted from several EU-based exchanges. Despite these challenges, Tether continues to dominate the global stablecoin market, especially in Asia where regulatory restrictions are less stringent.

Opportunities for Euro Stablecoins

The report highlights how MiCA presents opportunities for compatible euro-backed stablecoins. Circle’s EURC has emerged as a strong contender, benefiting from the regulatory clarity offered by MiCA. A stablecoin is a type of cryptocurrency that is pegged to a stable asset, such as the US dollar, or euro, designed to minimize price volatility. MiCA’s transparency and reserve-backing requirements aim to increase trust in these assets.

MiCA provides transparent conditions for the growth of euro-denominated stablecoins, allowing them to gain a more significant market position.

0

Share

Other news

Vana Academy Introduces New 9-Week AI Course

Vana Academy launches an AI course focusing on decentralized data ownership and user empowerment.

user avatarGiorgi Kostiuk

a minute ago

Germany Confiscates $38 Million in Cryptocurrency from eXch

German authorities conducted an operation seizing $38 million worth of cryptocurrency from the shuttered eXch platform linked to criminal activity.

user avatarGiorgi Kostiuk

15 minutes ago

140,112 SHM Airdrop by Gate.io: Details and Participation Rules

Gate.io announces a 140,112 SHM airdrop encouraging platform activity. Learn how to participate.

user avatarGiorgi Kostiuk

16 minutes ago

Dark Defender on XRP's Future: Double-Digit Price Possible

Analyst Dark Defender shares an optimistic outlook for XRP, hinting at the possibility of reaching double-digit prices.

user avatarGiorgi Kostiuk

16 minutes ago

South Korea Activates Crypto Policy Development

South Korea is considering active participation in the crypto market according to recent Democratic Party initiatives.

user avatarGiorgi Kostiuk

17 minutes ago

Cryptocurrencies: Polkadot Faces Resistance, Pepe Awaits Signals from Ethereum, and BlockDAG Gives Away 9 Million Coins

A brief overview of Polkadot and Pepe prices, as well as information on the BlockDAG program distributing millions of coins.

user avatarGiorgi Kostiuk

19 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.