Crypto Quill

A major shift is underway in Europe’s crypto market. With the EU set to enforce strict stablecoin regulations by March 31, exchanges like Crypto.com and Kraken are looking to fill the void left by Tether’s (USDT) departure. The race to launch compliant stablecoins is on, and competition is heating up.

Crypto.com Eyes Q3 2025 for Stablecoin Rollout

Crypto.com is wasting no time. The exchange is set to introduce its stablecoin in the third quarter of 2025. Until then, it’s working to ensure liquidity remains intact following Tether’s exit. Sources close to the matter say the new stablecoin will align with the EU’s regulatory framework, which demands issuers hold an electronic money license in at least one member state.

This move comes as part of a broader industry shakeup. With Tether’s $142 billion market share slipping, regulatory-compliant stablecoins are becoming a priority. Crypto.com’s approach signals a long-term commitment to navigating Europe’s evolving digital asset landscape.

One thing is clear—this isn’t just about launching a stablecoin. It’s about securing a foothold in a rapidly changing market.

Kraken’s Stablecoin Plans Still in Early Stages

Kraken is taking a different route. Instead of rushing to replace Tether, it’s focused on developing a U.S. dollar-pegged stablecoin through its Irish subsidiaries, Payward Ireland Limited and Payward Europe Solutions Limited.

For now, the exchange is prioritizing compliance. Kraken plans to automatically convert non-compliant stablecoin holdings into other approved options. However, its own stablecoin remains in early development, making it unlikely to launch before the EU’s March 31 deadline.

But there’s more. Kraken is already part of the Global Dollar Network consortium, which introduced the USDG stablecoin in collaboration with Paxos last year. Other members, including Robinhood and Galaxy Digital, are also making moves in the stablecoin space.

Kraken’s strategy? A mix of compliance, partnerships, and gradual development rather than a rushed rollout.

EU’s Stablecoin Rules Are Redrawing the Market

The European Union’s new regulations are reshaping the stablecoin landscape. Under the new framework, only issuers with an electronic money license can operate within the region. As a result, only a handful of stablecoin providers have secured approvals.

Circle, the issuer of USDC, obtained its license last summer, giving it a significant advantage. Meanwhile, Tether has yet to meet the EU’s requirements. Its market share has already fallen from 70% in December to around 63%, according to DeFiLlama.

The regulatory push is forcing crypto exchanges to rethink their strategies. Some, like Crypto.com and Kraken, are opting to build their own stablecoins. Others are pivoting toward partnerships to remain compliant.

Exchanges Taking Different Approaches

Not every exchange is following Crypto.com and Kraken’s lead. Some are taking a different approach to the stablecoin shakeup:

• Coinbase and Binance have already delisted Tether and other non-compliant tokens in Europe, choosing to back USDC instead.
• Gemini initially considered expanding its GUSD stablecoin into the European market but has since pulled back.
• Other players are exploring partnerships instead of launching their own stablecoins.

This divergence highlights the uncertainty surrounding stablecoins in Europe. While some exchanges see an opportunity to establish their own tokens, others are betting on regulatory-compliant alternatives like USDC.

The question remains—will Crypto.com and Kraken successfully carve out a place in Europe’s changing stablecoin market? That will depend on how well they navigate the EU’s regulatory landscape and whether they can gain user trust in a post-Tether Europe.