The euro stablecoin market is experiencing significant growth under the new Markets in Crypto-Assets Regulation （MiCA）, providing a favorable environment for stablecoin issuers.
Points
- MiCA regulations create a favorable environment for euro stablecoins.
- The new partnership aims to reintroduce the euro-pegged stablecoin EURT on the Stellar blockchain.
- Euro stablecoin market shows strong growth potential with increased demand and regulatory clarity.
The euro stablecoin market is witnessing a significant surge, driven by the introduction of the European Union’s Markets in Crypto-Assets Regulation （MiCA）. These regulations provide a clear and favorable framework for stablecoin issuers, fostering growth and stability in the market.
One notable development under MiCA is the partnership between France-based fintech company Next Generation and Ireland-based electronic money institution （EMI） Decta. This collaboration aims to reintroduce the euro-pegged stablecoin EURT on the Stellar blockchain, a project that was initially launched in 2017 but was suspended due to the lack of regulatory clarity.
MiCA has changed the landscape by classifying stablecoins as electronic money tokens （EMTs）, aligning them with traditional e-money and requiring issuers to possess an EMI license or be a credit institution. This regulatory clarity has made the euro-backed stablecoin market more predictable and attractive to investors.
Suren Hayriyan, president of Next Generation, highlighted the current demand for euro-backed stablecoins, estimating it to be around $30 billion, with a supply of less than $300 million. The partnership with Decta aims to address this gap, projecting significant growth for EURT in the near future.
Other major players in the euro stablecoin market include Circle’s EURC and Tether’s EURT, which are also compliant with MiCA regulations. The regulatory framework is expected to drive substantial growth in the euro-backed stablecoin sector, with market predictions forecasting a minimum market capitalization of €15 billion by 2025, reaching €70 billion by 2026, and potentially surpassing €2 trillion by 2028.
The activation of MiCA is a game-changer for the euro stablecoin market, providing the necessary legal and regulatory support for stablecoin issuers to thrive. The increase in demand and the introduction of compliant stablecoins like EURT are set to transform the digital asset landscape in Europe.
解説
- MiCA Regulations: Provide a clear and supportive framework for euro stablecoins, enhancing market predictability and attractiveness.
- EURT Reintroduction: Partnership between Next Generation and Decta aims to meet the growing demand for euro-backed stablecoins.
- Market Growth: Significant potential for growth with market predictions indicating substantial increases in euro stablecoin market capitalization.
- Regulatory Impact: MiCA’s activation supports stablecoin issuers, driving transformation in the European digital asset landscape.