USDC Dominates EU Stablecoin Market Amid MiCA Regulation

Circle has emerged as the main beneficiary of the European Union's Markets in Crypto-Assets (MiCA) regulation, which is reshaping the European stablecoin market. The firm stated that its USDC stablecoin is the only one among the top 10 by market capitalization that complies with the new regulatory framework.

The 60% reserves rule in EU banks led Tether to exit the European market and discontinue its EURT stablecoin, while Binance, Coinbase, Kraken, and OKX removed USDT pairs for their European users.

Circle's euro-backed token, EURC, also received approval under the same rules. Both tokens can be fully redeemed in fiat currency, hold segregated reserves, periodic attestation reports, and redemption mechanisms are accessible to the public.