A number of crypto exchanges, such as Crypto.com and Kraken, are exploring the launching of their own stablecoins in Europe following the EU’s directive to remove stablecoins that do not meet regulatory standards, including the widely-used USD Tether (USDT), by March 31.
Crypto.com is set to launch its stablecoin project in Q3 of 2025. In the meantime, it is working to replace the liquidity gap left by Tether’s exit from Europe. This move is to make sure that its new digital asset complies with the EU’s rigorous regulatory requirements, according to sources.
Kraken, on the other hand, is focused on creating a U.S. dollar-pegged stablecoin through its Irish subsidiaries, Payward Ireland Limited and Payward Europe Solutions Limited. While Kraken plans to automatically convert any non-compliant holdings into a different stablecoin, its own token is still in the early stages of development and is unlikely to be ready in time for the deadline.
Kraken is also part of the Global Dollar Network consortium, which introduced USDG with Paxos last year. Other members of the consortium, such as Robinhood and Galaxy Digital, are also delving into the stablecoin space.
The stablecoin landscape has become more competitive since the EU mandated that issuers hold an electronic money license in at least one member state. So far, only a few have secured such licenses, with Circle having obtained one last summer to operate USDC within the EU.
Tether, the world’s largest stablecoin at $142 billion, has not yet obtained the necessary approvals, which has contributed to its declining market share. In fact, according to DeFiLlama, its share dropped from 70% in December to about 63%.
Meanwhile, some exchanges are opting for strategic partnerships rather than launching their own stablecoins. Coinbase and Binance has delisted Tether and other non-compliant tokens in Europe, favoring USDC.
Additionally, exchanges like Gemini had considered expanding their GUSD stablecoin into Europe but have since retreated.
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