The stablecoin market surpasses $200 billion, with Tether (USDT) leading at $142.9 billion.
New MiCA regulation is set to enforce strict rules on stablecoin issuers in the EU by Dec 30.
Circle partners with Binance to boost USDC adoption across blockchain networks.
The stablecoin market has hit a new milestone, reaching $200 billion in total supply. Tether (USDT) is still the most dominant stablecoin, with a market supply of $142.9 billion. USDC is second, with a supply of $42.3 billion. Other players in the market include USDe, DAI, FDUSD, and USDS, which combine to share the remaining market.
MiCA Regulation Set to Impact
Several changes are slowly beginning to transform the environment. One of the most significant developments is the Markets in Crypto-Assets (MiCA) regulation, which is set to launch in the future. Starting from 30th December 2024, MiCA will enforce compliance standards on stablecoin issuers in the European Union. These new regulations are predicted to have a quite significant influence on the issuing and management of stablecoins.
Tether declared that it would cease the Euro Tether (EURT) stablecoin. The action results from the company’s attempt to adapt to changes in the legal framework in Europe, which has pressured stablecoin issuers to accept more rigid rules and regulations.
Stablecoins are also growing fast, and partnerships are contributing to this growth in a big way. Circle, the company that stands behind USDC, has entered into a new partnership with Binance. This partnership will enhance the use of USDC worldwide and the accessibility of UDC across all blockchain networks and payment gateways.
These partnerships are important in the growth and adoption of stablecoins. Through partnerships, companies can develop other technologies that will make stablecoins easily accessible to consumers.
Tether Focuses on Innovation
As reported earlier by CT Tether’s CEO, Paolo Ardoino highlighted the importance of partnership in the cryptocurrency industry. He said that collaboration is crucial in developing real-world applications of cryptocurrencies. Tether is also venturing into new technologies by integrating artificial intelligence with blockchain technologies in an attempt to shape the future. The company’s core mission is to create tangible use cases of blockchain and stablecoins in the financial and other industries.
In the future, as the market for stablecoin continues to expand, the pressures of regulation and partnerships will define the market’s future. The future of stablecoins in the global financial system might be shaped in the future.
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