The Markets in Crypto Assets (MiCA) regulations, which came into force in the EU on December 30, 2024, have set the stage for the development of euro-denominated stablecoins. This is according to a new report by JPMorgan, cited by CoinDesk.
Under the law, only stablecoins meeting specific criteria can be used as trading pairs on regulated markets. As a result, EU-based platforms have had to adjust their product offerings.
According to JPMorgan analysts, MiCA-compliant stablecoins—such as EURC by Circle—are strengthening their market positions amid the struggles of their competitors.
In November, Tether decided to discontinue support for EURT due to new regulatory requirements. The company’s CEO, Paolo Ardoino, criticized MiCA’s rule mandating significant reserve holdings in financial institutions.
Context
- Tether has invested in European stablecoin issuers Quantoz and StablR as part of a new strategy on the continent.
- By November 2024, MiCA-compliant stablecoins—like EURC, EURCV from Societe Generale, and EURI from Banking Circle—made up a record 91% of the market, according to Kaiko.
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