Circle becomes the first global stablecoin issuer to achieve compliance with the European Union\'s (EU) Markets in Crypto Asset (MiCA) policies

Stablecoin issuer Circle is the first stablecoin company to achieve compliance with the European Union's (EU) Markets in Crypto Asset (MiCA)

Stablecoin issuer Circle has become the first company to achieve compliance with the European Union’s (EU) Markets in Crypto Asset (MiCA) policies designed to oversee digital asset business operations. Having obtained an Electronic Money Institution (EMI) license from French regulators, CEO Jeremy Allaire said Circle Mint France will manage EURC and USDC issuance for European users.

“Today, Circle announces that USDC and EURC are now available under new EU stablecoin laws,” the announcement reads. “Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers, effective July 1st.”

Stablecoins offer an avenue to trade in and out of cryptocurrencies without suffering from the volatility associated with most digital assets, such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Assets like Tether’s USDT and USDC are pegged to a sovereign currency, like the U.S. dollar or the euro.

The development comes amid uncertainty surrounding stablecoins in the EU, with MiCA promising to install strict rules on how these assets may be used. For instance, under the bloc’s framework, firms have a daily issuance limit of $215 million in transaction value.

Is Circle set to upend Tether?Circle's EMI license and MiCA compliance could claim European market share and even challenge crypto's largest stablecoin issuer, Tether.

Speculation circulated about Tether's European future after some platforms, like Bitstamp, delisted the firm's euro-denominated offering, Tether EURT. Uphold also closed support for USDT and several other dollar-pegged stabelcoins.

With a vacuum emerging and Circle boasting the first MiCA stablecoin license, Allaire and his company could flip Tether and USDT as the dominant stablecoin in multiple jurisdictions. The USDC issuer also plans to redomicile its legal base from Ireland to the U.S. before an initial public offering (IPO). Looming U.S. stablecoin regulations might solidify the company as a global stablecoin powerhouse.

However, USDC still has an uphill battle to catch up to Tether in terms of market capitalization. USDT holds the number one spot with $113 billion to USDC’s $32 billion. At press time, USDC is down from its June 2022 peak of around $55 billion.

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