MiCA-compliant stablecoin supply surged 128% year-over-year, with USDC and EURC expected to gain European market share as USDT dominance declines under new regulations.
DeFi & Yields ·
MiCA-compliant stablecoin supply has grown 128% year-over-year, according to Decta. The surge reflects preparations ahead of the European Union's Markets in Crypto-Assets regulation taking effect. USDT, which currently dominates stablecoin markets in Europe, is expected to lose market share as the new regulatory framework comes into force, with USDC and EURC positioned to gain ground among compliant alternatives.
The mechanics of this shift center on MiCA's requirements for stablecoin issuers and custodians operating in the EU. Compliant stablecoins must meet specific authorization and reserve standards, creating advantages for issuers that have already obtained or are securing MiCA approval. USDC and EURC, both designed with regulatory alignment in mind, are anticipated to capture demand from users and platforms migrating to fully compliant infrastructure.
What remains uncertain is the actual pace and scale of USDT outflow from European markets once MiCA enforcement begins in earnest, whether non-compliant stablecoins will exit the region entirely, and how trading volumes and liquidity will redistribute among the three major stablecoins during the transition period.