Kraken and Crypto.com are to launch Stablecoin in 2025 as a form of action following the issuance of new regulations on the European Union’s Crypto Asset Market (MiCA). The two giant exchanges are currently developing their own Stablecoin to comply with the requirements and regulations of MiCA. Reportedly, the two will actually launch their Stablecoin this year.
Kraken and Crypto.com to launch Stablecoin, Following the European Union’s New MiCA Regulations.
Based on the new regulations from MiCA that come into effect in January 2025, all Stablecoin issuers must obtain EU authorization to be able to operate. MiCa will also conduct strict supervision for each Stablecoin issuer. Therefore, compliance with applicable regulations is very important to maintain the sustainability of the issuer’s operations.
According to the new rules, MiCA requires that stablecoins are fully backed by liquid reserves and are also authorized by EU regulators. Therefore, assets that do not comply with it will be wiped out from many platforms in Europe. For example, what happened to PayPal’s PYUSD and also Tether’s USDT? By March 2025, exchanges must also remove all illegitimate stable coins.
The existence of these new rules certainly forces the stock exchange to immediately adjust to the latest requirements. That’s why Kraken and Crypto.com launch their own Stablecoin. Both chose to develop their own stablecoins rather than rely on external issuers. This is because many external publishers have also not met the requirements and compliance.
What are Stablecoins?
Stablecoins themselves are digital assets that aim to maintain value so that they remain stable. Usually these digital assets are supported by traditional currencies such as the Euro or the US Dollar. Generally, stablecoins are also used to convert cryptocurrencies into fiat currencies because their value remains stable and is also not affected by even extreme price changes.
Crypto exchanges will typically use stablecoins issued by third parties such as USDC from Circle. But new regulations in Europe are encouraging exchanges to develop their own stablecoins to avoid dependency with third-party issuers that may not comply with the EU’s new regulations. That’s why Kraken and Crypto.com are to launch Stablecoin in 2025.
Stablecoin Launch Plans
Kraken has planned to launch its own dollar-backed Stablecoin through its existing subsidiary in Ireland. However, there is no information yet on when exactly they will make the launch. With this action, they can continue to maintain uninterrupted services in the European Union based on the latest MiCA regulations.
Crypto.com, which has just obtained a MiCA license in Malta, is also working on a similar project to be able to launch its own stablecoin. In fact, they will launch it in the third quarter of 2025. However, unfortunately, until now no other specific information has been revealed, including about the fiat currencies that it will support.
As Kraken and Crypto.com are set to launch their own proprietary Stablecoin, Circle has taken steps to align USDC with MiCA. Meanwhile, another issuer, Tether, is still yet to complete the latest regulatory approval. In order to continue to maintain their operational systems, of course, Circle and Tether must really try to comply with the new regulations.
Meanwhile, several other exchanges are positioning themselves in the new framework. For example, KuCoin is applying for a MiCA license in Austria. They took this step so that they could operate smoothly throughout the European economic area.
Kraken and Crypto.com to launch this Stablecoin is certainly the right big step for both. This method is also an effort by the two to maintain operational stability and maintain their market access so that it can continue to run well in the midst of increasingly strict supervision of new regulations.
