Kraken Eyes Dollar-Pegged Stablecoin Amid MiCA Pressure

Cryptocurrency exchange Kraken is reportedly exploring the launch of its own stablecoin, pegged to the US dollar, according to sources familiar with the matter. This move is partly driven by the European Union's Markets in Crypto-Assets Regulation (MiCA), which requires crypto asset service providers (CASPs) in Europe to delist non-compliant tokens like Tether's USDt.

Kraken's potential stablecoin would be issued through its unit in Ireland and is expected to fill a gap in competition created by MiCA's requirements. The exchange previously announced plans to launch its own blockchain, dubbed "Ink," in early 2025.

Kraken has already begun the process of delisting USDt in the European Economic Area (EEA), citing a "fast-moving regulatory landscape." The exchange plans to put USDt in "sell-only" mode by Feb. 27 and halt all spot trading for the stablecoin on March 24. However, some Kraken users in Europe have reported that customer support has reassured them that USDt remains available on the exchange.

Despite these plans, USDt remains the world's largest stablecoin and the fourth-largest digital asset, with a $142 billion market cap. According to data from CoinGecko, USDt also remains the top digital asset on Kraken, with USDT/USD and USDT/EUR trading pairs accounting for more than 30% of the exchange's trading volumes.

Crypto.com, which received a MiCA license in Malta, has also announced plans to launch its own stablecoin by the third quarter of 2025. As European regulations push crypto firms to delist USDt, the market is seeing an increased interest in alternative stablecoin options.