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Traditional European banks are ‘keeping an eye’ on the success of Tether’s stablecoin
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Amid difficulties in obtaining the MiCA license in Europe, Tether may start 2025 with a list of new challenges on the old continent. This is because, Traditional Eurozone banks are moving to launch their own stablecoins.
Institutions are supported by the new cryptocurrency regulation (MiCA), which is expected to transform the European financial market.
According to a Bloomberg report, traditional banks in Europe plan launch your own stablecoins. Among them is the traditional Société Générale of France. Founded in 1864, the SGF, as the bank is called, has stood out when it comes to blockchain and in July launched EUR CoinVertiblea Euro-backed stablecoin.
In addition to the secular bank, the French group also Oddo BHF is developing its own stablecoin, as is London-based financial services startup, Revolut.
Banks plan their own stablecoins
Announced at the end of 2023, the AllUnity is a project led by DWS Group, the investment arm of one of Germany’s largest banks, Deutsche Bank. The project, which aims to develop financial products and solutions based on blockchain, must also have its own stablecoin.
The Spanish Banco Bilbao Vizcaya Argentaria (BBVA), which even has a partnership with Tether and recently announced its own token, RWAtraded by a special fund, also intends to create a stablecoin.
The new moods of Europe’s banks are due to the new Regulation of Markets in Cryptoassets (MiCA). With the implementation of the rules, which came into force on December 30, 2024, MiCA requires stablecoin issuers and related service providers to obtain licenses to operate in the EU, allowing banks to enter the game.
Including, the MiCA has been a “thorn in the side” of Tether, which has had difficulty obtaining an operating license on the continent. Among the reasons, the one that draws the most attention is that the new law requires stablecoins, which want to operate on the continent, to have 30% or more of their liquidity guaranteed by banks.
This is seen as nonsense by the crypto industry. After all, it ends up benefiting banks in the face of innovation. Furthermore, the Demand is disproportionate, given that traditional banks are required to maintain only 1% liquidity with the European Central Bank.
However, the company has been moving to ensure the operation of its stablecoin in the region. The acquisition of StabIR, a company certified by MiCA, is one of the moves that Paolo Ardoino is making on the board. Therefore, despite the loss of US$2 billion in market valueTether must overcome obstacles and continue operating in the region, according to an analysis by an experienced market trader.
Traditional European banks are ‘keeping an eye’ on the success of Tether’s stablecoin
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Traditional European banks are ‘keeping an eye’ on the success of Tether’s stablecoin
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Traditional European banks are ‘keeping an eye’ on the success of Tether’s stablecoin
