Kraken Exchange Responds to EU Regulations with Proprietary Stablecoin

The European Union’s upcoming Markets in Crypto-Assets (MiCA) regulation is prompting major cryptocurrency exchanges to develop their own stablecoins as they navigate a shifting regulatory landscape.

According to Bloomberg, Kraken exchange is among the platforms responding to new requirements that mandate stablecoin issuers to obtain proper authorization to operate within the EU.

Key Takeaways: – Kraken exchange plans to launch a dollar-pegged stablecoin via its Irish subsidiary to comply with EU regulations. – The upcoming MiCA regulation mandates that stablecoin issuers obtain an e-money license, leading exchanges to either develop proprietary stablecoins or rely on authorized alternatives.

Kraken exchange is currently exploring the launch of a dollar-pegged stablecoin, which will be issued through its Irish subsidiary. The initiative comes as the exchange prepares for the impact of MiCA, which will require crypto service providers to delist non-compliant stablecoins, including Tether’s USDT.

A person familiar with the matter noted that discussions are still in early stages, meaning Kraken’s stablecoin may not be ready in time for its planned auto-conversion of non-compliant holdings on March 31. The exchange recently announced that all such assets on its European platform would be converted into an equivalent stablecoin.

Similarly, Crypto.com has outlined plans to introduce its own stablecoin in the third quarter of 2025. The company previously informed customers that USDT would be removed from trading in Europe by the end of March.

Tether, the issuer of the world’s largest stablecoin with a market value of $142.2 billion, has yet to secure a similar authorization and has criticized the EU’s regulatory framework as overly restrictive.

Under MiCA, stablecoin issuers must secure an e-money license in at least one EU member state to continue operations. So far, few companies have achieved this, with Circle being among the first to obtain a license for USDC last summer.

Regulatory developments in the EU make USDC a preferred alternative for several exchanges, including Coinbase, which delisted Tether in Europe last year in favour of Circle’s stablecoin.

Other exchanges are taking a more strategic approach. Binance partnered with Circle in December to facilitate user access to USDC. Meanwhile, Gemini initially explored expanding its stablecoin, GUSD, into the European market before deciding to withdraw from the effort.

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