The introduction of the Markets in Cryptoassets (MiCA) regulation by the European Union on December 30, 2024 could lead to an increase in the market share of euro-linked stablecoins, according to an analysis by JPMorgan. Currently, euro-linked stablecoins account for only 0.12% of the stablecoin market share. However, the implementation of MiCA may encourage European banks and financial institutions to adopt euro-pegged stablecoins for customer needs and for blockchain-based financial settlements. Since MiCA requires stablecoins to be compliant in order to be used in regulated markets, major issuers, such as Tether, may have to adapt or leave the European market.
