Morgan Stanley analyst says that the EU's landmark Markets in Crypto-Assets (MiCA) regulation will come into effect on December 30, 2024, which could enhance the market share of euro-pegged stablecoins.

Morgan Stanley analysts stated in a report that currently, euro-pegged stablecoins account for only 0.12% of the stablecoin market share, but MiCA could improve this situation by encouraging European banks and financial institutions to adopt euro stablecoins to meet customer demand and blockchain-based financial settlements. Analysts pointed out notable examples including Société Générale's EURCV stablecoin and BBVA's plan to launch a stablecoin in partnership with Visa.