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Circle has received authorization to market its USDC stablecoin services across Europe under the bloc’s MiCA laws.
Stablecoin issuer Circle is the first company to achieve compliance with the European Union’s (EU) Markets in Crypto Asset (MiCA) policies, which oversee digital asset business operations. With an Electronic Money Institution (EMI) license from French regulators, CEO Jeremy Allaire announced that Circle Mint France will manage EURC and USDC issuance for European users.
BREAKING NEWS: Circle announces that USDC and EURC are now available under new EU stablecoin laws; Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1st.
Stablecoins offer a way to trade in and out of cryptocurrencies without experiencing the volatility commonly associated with digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Assets such as Tether’s USDT and USDC are pegged to a sovereign currency, like the U.S. dollar or the euro.
This development has resolved previous uncertainty surrounding stablecoins in the EU, as MiCA has established strict rules on their usage. For instance, under the bloc’s framework, firms have a daily issuance limit of $215 million in transaction value.
Circle’s Strategic Moves
Circle’s EMI license and MiCA compliance could be strategic in capturing the European market and potentially challenging the largest stablecoin issuer, Tether. Speculation about Tether’s European future has increased after some platforms, like Bitstamp, delisted Tether’s euro-denominated offering, Tether EURT. Additionally, Uphold ceased support for USDT and several other dollar-pegged stablecoins.
With Circle securing the first MiCA stablecoin license, Allaire and his company could potentially overtake Tether and USDT as the dominant stablecoin in multiple jurisdictions. The USDC issuer plans to move its legal base from Ireland to the U.S. before an initial public offering (IPO). Upcoming U.S. stablecoin regulations might further establish the company as a global stablecoin leader.
However, USDC has a challenging path ahead before it can compete with Tether in market cap. USDT holds the top spot with $113 billion compared to USDC’s $32 billion. As of now, USDC is below its June 2022 peak of around $55 billion.
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