The UK recently revealed it intends to pursue comprehensive regulation of the digital asset sector in 2025. This includes the key stablecoin market, which is one of the most robust sectors of crypto. Today, much stablecoin activity incorporates onboarding or an off-ramp for crypto trading—an effective location to park funds. Going forward, stablecoins may become the top method of payments and transfers, improving upon existing digital rails for these services.
CI has received a comment from Tal Zackon, CEO and co-founder of TRES, a Web3 financial firm that sees Tether’s (USDT) lack of compliance in the EU creating opportunities for competitors. USDT is the most popular stablecoin in the world, with a market cap of more than $132 billion – multiples of its nearest competitor. In the EU, MiCA regulation has provided clarity for stablecoins. The UK will soon follow. Coinbase has said it will delist certain cryptos that are not compliant with MiCA at the end of December. This may include USDT. Zackon states;
“USDT’s non-compliance with MiCA creates a substantial gap in the European stablecoin market, opening the door for competitors like USDC and newcomers such as USDQ. While USDC is already compliant and poised to gain further market share, the launch of MiCA-compliant stablecoins like USDQ could spark a reshuffling of dominance in the region. This regulatory shift has the potential to dethrone USDT, the original leader in the stablecoin space, as it may be forced out of institutional books in Europe. For businesses in the Eurozone, a single dominant stablecoin isn’t sustainable long-term—competition is crucial for stability and growth in the market.”