#EU New Regulations Boost Euro Stablecoin Development#

The MiCA regulation, which came into effect on December 30th in the EU, could promote the development of euro-denominated stablecoins. JPMorgan, in a research report, pointed out that MiCA stipulates that only compliant stablecoins can be used as trading pairs in regulated markets, prompting EU exchanges to adjust their products. As a result, compliant stablecoins like Circle's EURC gained an advantage, while non-compliant stablecoins like Tether's EURT faced challenges. Under the new rules, stablecoin issuers like Tether must hold substantial reserves in European banks and obtain trading licenses. This led Tether to discontinue its EURT stablecoin and delist it from multiple EU exchanges. Although Tether remains the "dominant force" in the global stablecoin market, it is widely used in less restrictive Asian markets. Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU. The implementation of the MiCA regulation has created a more stable development environment for compliant euro stablecoins and could potentially drive the growth of the euro stablecoin market.