Crypto exchanges Crypto.com and Kraken may soon unveil their proprietary stablecoins. This move appears to be a strategic response to the European Union’s Markets in Crypto-Assets (MiCA) regulations, which enforce strict guidelines on the use of stablecoins in the region.

A report by Bloomberg dated February 20, 2025, indicated that companies like Crypto.com and Kraken are eager to enter the stablecoin sector, which has become increasingly lucrative in recent months.

The largest stablecoin, Tether’s USDT, has yet to secure its MiCA license due to ongoing concerns about transparency in its reserve practices, leading to criticism.

⚡️ JUST IN: Kraken and https://t.co/5EbF7oCv0k are preparing to launch their own stablecoins in the EU, seizing the opportunity amid Tether’s absence in the region due to recent regulations, according to Bloomberg.

Notably, both Coinbase and Crypto.com have recently delisted Tether in light of MiCA. In response, a Tether spokesperson remarked, “It is disappointing to see the rushed actions prompted by statements that provide little clarity regarding the rationale for such decisions.”

MiCA’s Stringent Requirements: A Catalyst for New Stablecoins

The MiCA regulations are geared towards establishing a clear legal structure for cryptocurrencies in Europe. However, these new regulations are seemingly unsettling established giants such as Tether, pushing exchanges like Kraken and Crypto.com to proactively seek solutions to maintain service continuity for their users in Europe.

Currently, unauthorized stablecoins are mandated to be removed from trading platforms operating in the EU, prompting exchanges to either discontinue third-party stablecoins or create compliant alternatives. Kraken is in the process of developing a dollar-backed stablecoin, which will be issued through its subsidiary in Ireland. Moreover, Crypto.com plans to launch its own stablecoin in the third quarter of 2025, though details remain sparse.

USDC Achieves Milestone Market Cap of $56B

USDC reached a significant milestone, achieving a record market cap of $56 billion—a remarkable 22% increase in just a month, adding $10.39 billion in circulation. This growth positions USDC ahead of its previous peak in 2022, demonstrating a complete rebound from the 2023 banking crisis that momentarily shook market confidence.

A primary driving factor behind USDC’s growth is its expanded use across Solana-based decentralized finance (DeFi) applications, leveraging Solana’s low transaction fees and high-speed capabilities. USDC has become the preferred stablecoin for a variety of trading purposes, including liquidity pools, swaps, and lending protocols. In contrast, Tether’s USDT, the market’s leading stablecoin, saw a growth of only 3.4% ($4.67 billion) during the same timeframe, while USDC saw a 78% increase year-over-year, reflecting unprecedented demand for this digital asset.