MiCA will boost euro-denominated stablecoins, says JPMorgan

The Markets in Crypto-Assets (MiCA) rules that took effect in the EU on 30 December 2024 have laid the groundwork for growth in euro-denominated stablecoins, according to a JPMorgan report, CoinDesk reported.

Under the law, only compliant stablecoins may be used as trading pairs on regulated markets.

As a result, EU-based platforms have adjusted their product line-ups.

MiCA-compliant tokens such as Circle’s EURC have strengthened their position at rivals’ expense, JPMorgan said.

In November Tether decided to cease support for EURT because of the new legal requirements. The company’s CEO, Paolo Ardoino, criticised the requirement to keep substantial reserves at financial institutions.

Earlier, Tether invested in European stablecoin issuers Quantoz and StablR as part of its new strategy on the continent.

By November 2024, MiCA-compliant stablecoins such as EURC, Societe Generale’s EURCV and Banking Circle’s EURI accounted for a record 91% market share, according to Kaiko.