JPMorgan: MiCA regulations will lead to growth of euro-denominated stablecoins
The Markets in Crypto Assets (MiCA) regulations, which came into effect in the EU on December 30, 2024, have created prerequisites for the development of the euro-denominated stablecoin segment. This is stated in a report by JPMorgan, writes CoinDesk.
According to the provisions of the law, only compliant 'stablecoins' may be used as trading pairs on regulated markets.
As a result, EU-based platforms have adjusted their product lines.
MiCA-compliant stablecoins like EURC from Circle have strengthened their positions due to competitors' problems, according to JP Morgan.
In November, Tether decided to discontinue support for EURT due to new legislative requirements. The company's CEO Paolo Ardoino criticized the requirement to hold significant collateral reserves in financial institutions.
Recall that Tether 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 had captured a record market share of 91%, according to Kaiko
