The European Markets in Cryptoassets (MiCA) Regulation has had a notable impact on the euro stablecoin landscape, according to a new report from Kaiko. The study found that the implementation of MiCA has led to a number of delistings and adjustments to offerings on major exchanges.

Research: Euro Stablecoin Market Transformed by MiCA

Three months after MiCA was implemented, the euro stablecoin market has seen significant changes. Kaiko data shows that MiCA-compliant euro stablecoins, such as Circle’s EURC and Société Générale’s EURCV, now account for 67% of the market.

The growth is attributed to platforms like Coinbase, which overtook Binance as the top market for euro stablecoins in August, in part due to the removal of non-compliant tokens. However, Kaiko noted that exchanges like Binance continue to promote non-compliant stablecoins that target users outside of Europe.

The report also mentioned a steady increase in the market share of MiCA-compliant USD stablecoins, especially Circle’s USDC. According to Kaiko, USDC’s market share has increased slightly from 10% to 12%, a more gradual shift than its euro counterparts.

Despite these changes, trading volume for euro-backed stablecoins has remained steady at around $30 million per week, well below the $100 million level before MiCA launched in March.

Looking ahead, Kaiko researchers predict that there will be potential changes in the USD stablecoin market, especially with Coinbase’s upcoming plans to delist tether (USDT) for European users by the end of the year.

USDT, which is not MiCA compliant, has been widely adopted globally, and its removal from the European market could open the door to regulated USD stablecoins. However, Kaiko data indicates that USDT still maintains a strong presence in other regions, despite these regulatory hurdles.

What do you think about the changes in the stablecoin space after MiCA? Please share your thoughts and opinions on this topic in the comments section below.
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