According to U.Today, Ripple, a prominent U.S. fintech company, may be compelled to issue its own stablecoin pegged to the Euro (EUR) due to restrictions imposed by the Markets in Crypto Assets Regulation (MiCA). These regulations limit the number of non-EUR stablecoins to 1 million transactions per day and impose a €200 million trading volume cap. This has led to speculation within the Ripple community about the necessity of a EUR-pegged stablecoin to meet the demand for cross-border remittances.

Community activist Crypto Eri (@sentosumosaba) shared her thoughts on the matter with her 240,000 followers, suggesting that Ripple and other companies might issue a EUR stablecoin due to MiCA's limitations. Another community member, @WKahneman, echoed this sentiment, noting that the trading volume limits are too low for Ripple's operations and questioning whether XRP could play a role in the new stablecoin design.

Ripple is also contributing to the Digital Euro Association (DEA) as a supporting partner, providing consulting and infrastructure assistance to the European Central Bank's (ECB) stablecoin initiatives. Currently, EUR-pegged stablecoins represent a small fraction of the market. For example, the largest Euro stablecoin, Stasis Euro, has a market capitalization of $137 million, while Tether's and Circle's EUR-centric products have a combined market cap of $70 million, significantly lower than their USD-pegged counterparts.

Previously, Ripple announced the launch of its USD-pegged stablecoin, RLUSD, which will be backed by cash and its equivalents. Ripple's Monica Long emphasized that the new asset would complement, rather than compete with, XRP as a tool for cross-border transfers. The price of XRP has risen by 5.9% in the last 24 hours, reaching a local high of over $0.60.