Crypto Giants Kraken and Crypto.com to Launch EU-Compliant Stablecoins in 2025

Major crypto platforms Kraken and Crypto.com are set to launch their own proprietary stablecoins in 2025, in response to new European Union regulations. The Markets in Crypto-Assets (MiCA) regulation, effective from January 2025, requires stablecoin issuers to obtain proper authorization to operate within the EU. This shift aims to enhance transparency, liquidity, and consumer protection in the crypto market.

Stablecoins, digital assets intended to maintain a steady value, are commonly used to convert cryptocurrencies into fiat money. They are typically backed by traditional currencies like the U.S. dollar or euro. Currently, crypto exchanges rely on stablecoins like Tether (USDT) and USD Coin (USDC), issued by third-party companies—Tether and Circle, respectively.

However, the new European regulations are encouraging crypto service providers like Kraken and Crypto.com to develop proprietary stablecoin solutions. This move aims to avoid potential dependency on third-party stablecoin issuers that may not comply with the EU’s new regulations. If they don’t issue their own stablecoins, they may face challenges if the third-party stablecoin issuers aren’t authorized or compliant with MiCA.

Kraken is currently working on a dollar-backed stablecoin, which will be issued through its subsidiary in Ireland. Crypto.com is also planning to launch its own stablecoin in the third quarter of 2025, but the details about the fiat currency it will be backed by and other specifics are still unclear.