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MiCA Spurs Stablecoin Race: European and U.S. Banks Target Blockchain Payment Market
The recent introduction of the Markets in Crypto-Assets Regulation (MiCA) has stirred a competitive frenzy among European and US-based financial institutions, with many announcing their plans to launch stablecoins under the new framework.
According to reports, several European banks have already initiated the process of developing Euro-backed stablecoins, which will enable them to capitalize on the growing demand for blockchain-based payment solutions. Societe Generale – Forge (SG-Forge), a French bank, has already released its own Euro-backed stablecoin for retail investors. Meanwhile, German-based Oddo BHF SCA and London’s Revolut are reportedly set to launch their own version of a Euro pegged-stablecoin.
In addition to these developments in the European banking sector, several US banks have also expressed interest in expanding their stablecoin offerings once regulatory clarity is obtained. Deutsche Bank’s asset management arm, DWS-backed AllUnity, has announced its plans to release a stablecoin by 2025.
Furthermore, Visa Inc. is working with various financial institutions such as BBVA to develop new stablecoin solutions using blockchain technology. The firm is reportedly in talks with multiple banks and other stakeholders to build out this initiative further.
It remains unclear at the time of writing how these developments will shape the overall landscape of the cryptocurrency market; however, it is clear that MiCA has sparked a renewed focus on decentralized finance (DeFi) among traditional financial institutions.
Source: cryptonewsland.com
