The European Markets in Crypto-Assets Regulation (MiCA) has made a noticeable impact on the euro stablecoin landscape, according to a fresh report by Kaiko. The research points out that MiCA’s rollout has triggered several delistings and adjustments to offerings on major exchanges.

Study: Euro Stablecoin Market Transformed by MiCA

Three months into MiCA’s enforcement, the euro stablecoin market has seen significant changes. Kaiko’s data reveals that euro stablecoins adhering to MiCA, such as Circle’s EURC and Société Générale’s EURCV, now command 67% of the market share.

This growth is credited to platforms like Coinbase, which surpassed Binance as the top market for euro stablecoins in August, thanks in part to the removal of non-compliant tokens. However, Kaiko notes that exchanges like Binance continue to push non-compliant stablecoins, targeting users outside of Europe.

The report also touches on the steady rise in the market share of MiCA-compliant USD stablecoins, particularly Circle’s USDC. According to Kaiko, USDC’s share in the market edged up from 10% to 12%, a more gradual shift compared to its euro counterparts.

Despite these shifts, trading volumes for euro-backed stablecoins have held steady at around $30 million per week, well below the $100 million seen before MiCA’s introduction in March.

Looking ahead, Kaiko’s researchers expect possible changes in the USD stablecoin market, especially with Coinbase’s upcoming plan to delist tether (USDT) for European users by year-end.

USDT, which doesn’t comply with MiCA, has gained widespread global adoption, and its removal from European markets could open doors for regulated USD stablecoins. Nevertheless, Kaiko’s data indicates that USDT still retains a strong presence in other regions, despite these regulatory hurdles.

Source : Bitcoin News - Oct 15, 2024