Crypto Quill

Major crypto exchanges, including Crypto.com and Kraken, are gearing up to launch their own stablecoins in Europe. This move follows an EU directive that will remove stablecoins failing to meet regulatory standards—such as USD Tether (USDT)—from European markets by March 31.

Crypto.com Prepares Stablecoin Rollout for Q3 2025

Crypto.com has set its sights on a Q3 2025 release for its stablecoin, aiming to fill the liquidity void left by Tether’s forced departure from the region. The company is working to ensure that its digital asset aligns with the EU’s stringent compliance rules, sources familiar with the matter said.

In the interim, the exchange is actively searching for ways to maintain liquidity in the market. The exit of USDT, which has been a staple in crypto trading, is expected to cause shifts in capital flows, making it crucial for platforms like Crypto.com to provide alternatives.

The timing of the launch raises questions, though. With the March 31 deadline looming, the gap between Tether’s removal and Crypto.com’s stablecoin debut could leave traders scrambling for substitutes.

Kraken’s Stablecoin Strategy Still in Early Stages

Kraken is taking a different approach. The exchange is looking to introduce a U.S. dollar-pegged stablecoin through its Irish subsidiaries, Payward Ireland Limited and Payward Europe Solutions Limited. However, its own token remains in the early development phase and is unlikely to be ready before the EU’s compliance deadline.

To bridge the gap, Kraken is planning to convert non-compliant stablecoins into other alternatives automatically. The exchange has yet to confirm which stablecoins will be used in this transition.

Kraken is also a key player in the Global Dollar Network consortium, which launched the USDG stablecoin with Paxos last year. Other consortium members, including Robinhood and Galaxy Digital, are also exploring their own stablecoin strategies.

EU’s Stablecoin Licensing Rules Reshape the Market

The European Union’s strict stablecoin regulations have changed the game. Issuers must now hold an electronic money license in at least one member state to continue operating within the bloc.

So far, only a handful of companies have secured this license. Circle, the issuer of USDC, obtained approval last summer, positioning itself as one of the few compliant stablecoin providers in the EU.

Tether, despite being the world’s largest stablecoin issuer with a market capitalization of $142 billion, has not yet received the required authorization. As a result, its dominance has taken a hit.

• According to DeFiLlama, Tether’s market share dropped from 70% in December to around 63%, reflecting the growing uncertainty surrounding its future in Europe.

Exchanges Weigh Their Options: Launch or Partner?

Not every exchange is rushing to launch its own stablecoin. Some platforms are choosing strategic partnerships instead.

Coinbase and Binance, for example, have already removed USDT and other non-compliant stablecoins from their European platforms, favoring USDC as a compliant alternative.

Gemini had considered expanding its GUSD stablecoin into Europe but has since backed off. With the regulatory landscape tightening, exchanges must decide whether to invest in their own stablecoins or rely on existing, compliant options.

With just weeks left until the EU’s deadline, the stablecoin market in Europe is undergoing a rapid transformation. While Crypto.com and Kraken move forward with their plans, the biggest question remains: Who will dominate the post-Tether era in Europe?