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MiCA Spurs Stablecoin Race: European and U.S. Banks Target Blockchain Payment Market
As the European Union’s Markets in Crypto-Assets Regulation (MiCA) takes effect, banks from both Europe and the United States are intensifying their efforts to launch stablecoins. The regulation has created a sense of urgency among financial institutions to explore blockchain-based payment solutions.
Under MiCA, banks must secure licenses for issuing stablecoins, meet reserve guidelines, and ensure investor protection. Circle’s USDC has already obtained approval under this framework, widening its scope in the region. Tether Holdings, on the other hand, has yet to make a move towards obtaining a license for its Euro-pegged stablecoin.
European banks are taking advantage of the regulatory clarity offered by MiCA to release their own euro-backed stablecoins. French-based Societe Generale – Forge (SG-Forge) has introduced its euro-stablecoin, accessible to retail investors. Oddo BHF SCA from Frankfurt and Revolut in London are also preparing to launch their own euro-stablecoins.
Deutsche Bank’s asset management arm, DWS-backed AllUnity, plans to roll out its stablecoin by 2025. The company’s CEO has stated that they will double-check the veracity of any information before sharing it with investors. SG-Forge’s CEO emphasized the importance of ensuring a reliable supply chain for their new product.
Meanwhile in the United States, banks are also joining the fray to develop blockchain-based payment systems. They face stiff competition from existing players and need to adapt quickly to stay ahead.
The MiCA regulation has created a sense of urgency among financial institutions to explore this rapidly growing market. The regulatory clarity provided by MiCA is expected to further accelerate the development of blockchain technology for payments, with banks racing to be early adopters.
This article was written by Wesley Munene and edited by CNL’s editorial team.
Source: cryptonewsland.com
