Euro stablecoin volume reaches all-time high, according to Kaiko

The rise of Euro stablecoins

Kaiko’s report

Euro-backed stablecoins have seen consistent volume growth since the start of the year, indicating rising demand in European markets. Although USD-backed stablecoins continue to dominate the crypto market, Euro-backed stablecoins have experienced a significant increase in trading volume since the beginning of 2024. As of June 2024, Euro-backed stablecoins account for 1.1% of all transactions, skyrocketing from near zero in 2020 and representing an all-time high.

Trading pairs of USDT against EUR currently have some of the highest volumes, surpassing EUR-denominated Bitcoin trading by a large margin on exchanges like Binance and Kraken. This indicates that these exchanges serve as important fiat off-ramps for EU traders.

Euro stablecoin surge

In the past year, Euro stablecoins have seen unprecedented growth. These digital assets, which are pegged to the value of the Euro, offer stability and security in a highly volatile crypto market. The full reserve model ensures that each Euro stablecoin is backed by Euros held in reserve, providing confidence to investors and users.

Read more about stablecoins

Factors driving growth

Several factors have contributed to the surge in Euro stablecoin volume. The demand for digital currency that offers stability and the convenience of near-instant foreign exchange transactions has attracted a wide range of users, from retail investors to businesses. Additionally, the increasing integration of Euro stablecoins into various platforms has expanded their accessibility and usability.

The impact of MiCA Regulation (MiCAR)

What is MiCAR?

MiCAR is a comprehensive framework proposed by the European Union to regulate digital assets and their service providers. MiCAR aims to provide legal clarity and consumer protection while fostering innovation and competition in the crypto space.

Read more about MiCAR

Boosting Euro stablecoin volume

MiCAR is expected to have a profound impact on the Euro stablecoin market. By establishing clear regulatory guidelines, MiCAR will enhance investor confidence and encourage broader adoption of Euro stablecoins. The regulation will ensure that Euro stablecoins are issued and maintained securely, further increasing their appeal as a reliable digital asset.

Encouraging investments

With the regulatory certainty provided by MiCAR, now is the ideal time to invest in Euro stablecoins. The regulation will create a more stable and secure environment for digital currency investments, making Euro stablecoins an attractive option for those looking to diversify their portfolios and mitigate risks.

Weeding out non-compliant USD-backed stablecoins

MICAR is set to transform the landscape for stablecoins in Europe by ensuring compliance and enhancing transparency. Binance and Kraken have recently announced plans to restrict stablecoins that do not meet MiCAR standards, which could lead to the delisting of non-compliant USD-backed stablecoins on their platforms. This follows the precedent set by OKX, which has already delisted Tether in the EU. These actions highlight the potential of MiCAR to create an opportunity for Euro stablecoins to overtake the market and experience significant growth.

Benefits of Euro stablecoins

Stability and security

Euro stablecoins offer the stability of the Euro combined with the security of blockchain technology. This makes them a reliable digital asset for both transactions and long-term investments. The full reserve model and stringent regulatory oversight ensure that Euro stablecoins maintain their value and are protected from market volatility.

Global access and convenience

Euro stablecoins provide global access to Euro-denominated banking accounts, enabling users to make payments and conduct transactions seamlessly across different time zones. With an internet connection, users can access their funds and perform near-instant transactions, making Euro stablecoins a convenient option for international business and personal use.

Integration and usability

The integration of Euro stablecoins into multi-currency digital banking platforms has expanded their usability. Users can easily exchange Euro stablecoins for other digital assets or fiat currencies, providing flexibility and convenience in managing their finances.

Why now is the time to start using Euro stablecoins

Growing demand

The increasing demand for Euro stablecoins is evident from the record-high trading volumes reported by Kaiko. As more businesses and individuals recognize the benefits of Euro stablecoins, their usage is expected to grow further. This rising demand presents a lucrative opportunity for investors to capitalize on the expanding Euro stablecoin market.

Regulatory support

The upcoming MiCAR will provide a solid legal framework for Euro stablecoins, enhancing their credibility and attractiveness as an investment. The regulation will ensure that Euro stablecoins are issued and managed in compliance with stringent standards, reducing risks and increasing investor confidence.

Market potential

The Euro stablecoin market has significant potential for growth. With the increasing adoption of digital currency and the expanding use cases for Euro stablecoins, the market is poised for substantial development. Investing in Euro stablecoins now allows investors to benefit from the early stages of this growing market.

StablR EURR is well-positioned for MiCAR

As a leading issuer of Euro stablecoins (EURR), StablR is committed to providing a secure and reliable digital currency that meets the highest standards of stability and transparency. Our Euro stablecoin is backed by a full reserve model, ensuring that each coin is supported by Euros held in reserve. This provides users with confidence in the value and security of our stablecoin.

Read more about StablR’s Proof of Reserve

We offer seamless integration with multi-currency digital banking platforms, enabling users to access Euro-denominated banking accounts and perform near-instant foreign exchange transactions. Our Euro stablecoin is accessible globally, allowing users to make payments and conduct transactions conveniently from anywhere with an internet connection.

Join the Euro Stablecoin Revolution

The all-time high trading volume of Euro stablecoins, as reported by Kaiko, marks a significant milestone in the digital currency market. With the implementation of the MiCAR, the volume and adoption of Euro stablecoins are expected to increase further. Euro stablecoins offer stability, security, and convenience, making them an attractive option for investors and users alike. As the demand for digital currency continues to rise, now is the perfect time to invest in Euro stablecoins and capitalize on their growth potential.