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Individuals within the European Union may soon gain access to a fully regulated stablecoin backed by the euro. This opportunity to introduce a new asset arises from the adoption of MiCA and the regulatory clarity established in the digital asset sector.
The Irish firm DECTA Limited and the French FinTech company Next Generation are currently discussing the potential issuance of a EURT stablecoin that will be pegged to the euro. This forthcoming asset will be launched on the Stellar blockchain.
The EURT initiative was initially introduced by the FinTech company Tempo France on the Stellar platform in 2017, positioning it among the earliest euro-pegged stablecoins. However, the absence of a regulatory framework resulted in its mandatory suspension. Tempo France and Next Generation are both under the umbrella of the same parent company, the U.K.-based private entity E-Ventures Associates Limited.
The press release highlights that this initiative has been made feasible by the new standards for digital asset issuers that have recently come into effect under the MiCA legislation. According to the new regulations, stablecoins are categorized as electronic money tokens (EMT) and are treated similarly to conventional electronic money, requiring their issuers to be registered as credit institutions or to possess an Electronic Money Institution (EMI) license.
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DECTA has secured EMI licenses from regulators in the U.K., Ireland, and Cyprus, ensuring that EURT will be fully compliant with regulatory requirements.
Suren Hayriyan, President of Next Generation, provided insights regarding the collaborative effort with DECTA to relevant media outlets. Key points from his statements include:
- EURT is anticipated to launch by October 2024;
- Circle’s EURC and Tether’s EURT are identified as the primary competitors of the new stablecoin;
- The current demand for euro-pegged stablecoins is approximately $30 billion, while the existing supply is under $300 million.
Circle was the first issuer of a stablecoin to meet MiCA requirements. It is also noted that the company has selected France as its European headquarters, viewing the country’s stance on digital asset regulation favorably.
Сообщение MiCA Adoption Boosts European Stablecoin Market Development появились сначала на CoinsPaid Media.
