Users in the European Union may soon have access to a fully regulated, euro-backed stablecoin. The opportunity to launch a new asset comes as a result of the MiCA adoption and regulatory clarity in the digital asset space.
Irish company DECTA Limited and French FinTech company Next Generation are in talks about the possibility of issuing a EURT stablecoin pegged to the euro. The future asset will be launched on the Stellar blockchain.
The EURT project was originally launched by FinTech company Tempo France on Stellar in 2017, making it one of the first euro-pegged stablecoins. However, the lack of a regulatory framework led to its forced suspension. Tempo France and Next Generation share the same parent company, U.K.-based private firm E-Ventures Associates Limited.
The press release notes that the initiative was made possible by the new standards for issuers of digital assets that recently came into force under the MiCA bill. Under the new rules, stablecoins are classified as electronic money tokens (EMT) and are treated in the same way as traditional electronic money, and their issuers must be registered as a credit institution or hold the Electronic Money Institution (EMI) license.
DECTA obtained the EMI licenses from the U.K., Irish, and Cypriot regulators, which will ensure full regulatory compliance for EURT.
Suren Hayriyan, President of Next Generation, commented on the joint initiative with DECTA for relevant media. Key facts from his quotes are:
- EURT is scheduled for release by October 2024;
- Circle’s EURC and Tether’s EURT are the new stablecoin’s main competitors;
- Current demand for euro-pegged stablecoins is around $30 billion and the current supply is less than $300 million.
Circle was the first stablecoin issuer to comply with MiCA requirements. It is also noted that the company has chosen France as its European headquarters, positively assessing the country’s position on the regulation of digital assets.
