Euro Stablecoins Eye Growth Under MiCA, Says JPMorgan
Analysts at JPMorgan predict that euro-denominated stablecoins will grow under Europe’s MiCA (Markets in Crypto-Assets Regulation) framework.
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The financial institution highlights MiCA’s comprehensive framework as a potential catalyst for reshaping the stablecoin landscape in Europe.
MiCA, which came into full force at the end of 2024, aims to establish a clear regulatory structure for crypto assets across the EU, including stringent guidelines for stablecoin issuers.
The Block reports that JPMorgan analysts, led by Nikolaos Panigirtzoglou, predict strong growth for euro-backed stablecoins, which currently account for just 0.12% of all stablecoins. This anticipated growth is tied to the group’s compliance with the European rules.
Analysts noted that MiCA could give euro-backed stablecoins the legitimacy they’ve been missing. More investors might start seeing them as a real alternative to dollar stablecoins like Tether (USDT) or USD Coin (USDC), which currently dominate the market.
That said, it’s not all smooth sailing. Euro stablecoins are still in their infancy compared to their dollar counterparts, and the upcoming European Central Bank digital euro could add competition.
Among the leading euro-based stablecoins currently are Circle’s EURC, STASIS’s EURS, and Celo’s CEUR.
There’s also a risk that Tether (USDT), the largest stablecoin at present, could be excluded from the European Union if it doesn’t adapt to the new rules. Some exchanges in Europe have already begun reevaluating their listings for USDT in anticipation of regulatory changes, signaling potential market shifts. The full impact of MiCA will likely become clearer as its enforcement progresses in 2025.
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