Major cryptocurrency platforms Kraken and Crypto.com are developing their own stablecoins to comply with upcoming EU regulations and ensure uninterrupted services for users. The move comes as the European Union’s Markets in Crypto-Assets (MiCA) regulation takes effect in January 2025, requiring stablecoin issuers to obtain authorization to operate within the EU.
Why Stablecoins Matter
Stablecoins are digital assets designed to maintain a stable value, typically pegged to traditional currencies like the U.S. dollar or euro. They serve as a bridge between cryptocurrencies and fiat money, offering stability amid the volatility of other digital assets.
Currently, most crypto exchanges rely on third-party stablecoins such as:
- Tether (USDT)
- USD Coin (USDC)
However, the MiCA regulation introduces new compliance challenges, pushing exchanges like Kraken and Crypto.com to create their own solutions.
The Impact of MiCA Regulations
The MiCA framework aims to enhance:
✅ Transparency
✅ Liquidity
✅ Consumer Protection
Under these rules, stablecoin issuers must obtain authorization to operate in the EU. If exchanges continue relying on third-party stablecoins, they risk disruptions if those issuers fail to comply.
👉 Learn more about stablecoin regulations
Kraken’s Dollar-Backed Stablecoin
Kraken is developing a dollar-backed stablecoin through its Irish subsidiary. This move ensures compliance with EU laws while maintaining liquidity for users.
Crypto.com’s Planned Stablecoin Launch
Crypto.com intends to introduce its own stablecoin in Q3 2025, though details about its backing currency remain undisclosed.
Advantages of Proprietary Stablecoins
- Reduced reliance on third-party issuers
- Better compliance with regulations
- Enhanced control over liquidity
FAQs
Why are Kraken and Crypto.com launching their own stablecoins?
To comply with EU regulations and avoid dependency on third-party issuers that may not meet MiCA requirements.
What are the benefits of proprietary stablecoins?
They provide greater regulatory compliance, liquidity control, and operational stability.
When will Crypto.com launch its stablecoin?
Expected in Q3 2025, though specifics are still unclear.
👉 Discover how stablecoins impact crypto trading
Final Thoughts
As EU regulations tighten, major exchanges are taking proactive steps to ensure compliance and stability. Kraken and Crypto.com’s upcoming stablecoins highlight the industry’s shift toward self-reliance and regulatory adaptation.
Stay tuned for updates as these developments unfold in 2025!