Circle has secured an EMI (Electronic Money Institution) license under the newly implemented MiCA crypto rules. Circle can now begin offering crypto tokens pegged to the US Dollar and Euro, thereby gaining access to the market of over 450 million people across the European Union. Circle Mint France will issue the Euro-dominated EURC stablecoin and USDC.
The development follows the delisting of several Euro-dominated stablecoins, such as EURT, prior to the implementation of new MiCA rules.
It is believed that Circle will attempt to make the most of this opportunity, especially in terms of gaining a competitive edge over Tether’s USDT. With a collective valuation of $32 billion, Circle’s stablecoin holds the second position. Tether leads the market with a valuation of approximately $110 billion. Making an early move in the European Union is considered crucial due to the gap’s ongoing expansion.
Jeremy Allaire, the co-founder and chief executive officer of Circle, confirmed the development in a post on X. Jeremy said that Circle would now issue both USDC and EURC to European customers starting July 1, 2024. Calling it a major milestone, Jeremy further stated that it was gratifying to witness this moment, which practically fuels the evolution and adoption of digital currencies.
It is interesting to note that Europeans who have MiCA compliance products in their accounts experience no alterations. Without any modifications, users may continue to trade, transact, and self-custody tokens.
Members of the crypto community have started responding to the announcement. They call it massive, further expressing their bullishness about the future of digital currencies.
Allaire, in the post, said that a clear rulebook for digital currencies helps to foster a highly competitive market for Euro digital currency, adding that it enables banks and EMIs to issue and use Euro stablecoins. It is anticipated that stablecoins will be incorporated into the products and services of institutions. In a few months, the actual implementation or utilization would be observed. Stablecoins are also likely to gain recognition across commerce and finance.
The development comes days after Circle filed to shift its legal home to the US. It had previously been in Ireland. The paperwork is in process and is believed to be due before the planned IPO. The plan was made public in January this year.
It is right to conclude that things are falling into their respective places for Circle. Stripe announced in April this year that it would bring back crypto payments through USDC stablecoin. In 2018, Stripe halted transactions due to the heavy volatility of Bitcoin. A clear timeline is unavailable, but the community can expect a re-introduction to happen later this year. It will first apply to Solana, Polygon, and Ethereum blockchains.
Circle securing an EMI license under the newly implemented MiCA rules is a pivotal moment for the industry and stablecoins. Only time will tell how successfully people throughout the EU embrace the concept of digital currencies.