XRP News Today: Tether’s USDT Exits EU Market Due to MiCA Regulations Ripple’s RLUSD Emerges as Strong Contender

Tether’s USDT has exited the European market due to the stringent regulations imposed by the Markets in Crypto-Assets Regulation (MiCA). This move has left a significant gap in the stablecoin market, valued at $150 billion. The departure of USDT has created a void that other stablecoins are now vying to fill. Among the contenders, Ripple’s RLUSD has emerged as a strong candidate, particularly after being listed on Bitstamp, the leading European cryptocurrency exchange.

Crypto analyst Jake Claver noted that Tether’s decision to withdraw from the EU market was driven by MiCA’s strict rules, which include no interest payouts, strict cash reserves, capped issuance and redemptions, and mandatory links to EU banks. This regulatory environment has made it challenging for Tether to continue operating in the region, leading to its exit and the subsequent liquidity crunch in the EU crypto market.

With USDT’s departure, the European crypto trading landscape is experiencing a shift. Users are gradually moving to platforms outside the EU, and liquidity is diminishing. Circle’s USDC and EURC are stepping in as MiCA-compliant alternatives, but their combined market size is still relatively small compared to USDT. While Circle offers compliance, it lacks the scale to fully replace Tether’s dominance.

Claver highlighted that Ripple’s RLUSD stablecoin could become the biggest beneficiary of this situation. Launched in December, RLUSD is fully compliant with MiCA and operates on both the XRP Ledger and Ethereum. It is supported by Ripple’s institutional partnerships and has a strong global presence, particularly in Asia, where regional stablecoins are gaining traction. Ripple’s early preparation and regulatory alignment position it as a strong contender to fill the stablecoin gap in the EU.

The broader implications of USDT’s departure extend beyond the stablecoin market. The exit of Tether could trigger a larger domino effect across the crypto ecosystem, potentially benefiting assets like Bitcoin and accelerating the rise of XRP. As regulatory-compliant alternatives step in to fill the void left by USDT, the market dynamics are set to shift, with Ripple’s RLUSD poised to play a significant role in reshaping the European crypto landscape.