Are Crypto.com And Kraken Launching Their Own Proprietary Stablecoins This Year?

Crypto exchanges Crypto.com and Kraken may introduce their proprietary stablecoins soon. This strategic decision may be a response to the European Union’s Markets in Crypto-Assets (MiCA) regulations, which require exchanges to comply with strict rules regarding the use of stablecoins within the region.

A Bloomberg report dated 20 February 2025 hinted at new entrants like Crypto.com and Kraken wanting “in on the game” of running a stablecoin business, which is highly profitable these days.

The largest stablecoin, Tether’s USDT, is yet to obtain their MiCA license owing to their lack of transparency regarding their reserves, something that they have faced criticism for in the past.

JUST IN: Kraken and https://t.co/5EbF7oCv0k are planning to launch their own stablecoins in the EU, taking advantage of Tether’s absence in the region due to new regulations, according to Bloomberg.

So far, only 10 companies have been approved to issue stablecoins under the… pic.twitter.com/K2h9G7Zp3M

— Mayank Dudeja (@imcryptofreak) February 21, 2025

Recently, both Coinbase and Crypto.com delisted Tether due to MiCA.

Meanwhile, a Tether spokesperson said, “It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves.”

Explore: MiCA’s USDT Delisting Disappoints Tether, Says Could Make the Market Disorderly

MiCA’s Stringent Requirements: Push Behind Proprietary Stablecoins

The MiCA regulations, which aim to establish a clear legal framework for cryptocurrencies in Europe, have introduced stringent requirements for stablecoins.

However, the new regulations have disrupted the status quo of giants like Tether, prompting exchanges like Kraken and Crypto.com to take proactive measures to ensure continuity of services for their European users.

Under these rules, unauthorized stablecoins must be removed from trading platforms operating within the EU. This has created a pressing need for exchanges. They can either discontinue the use of third-party stablecoins or develop their own compliant alternatives.

A dollar-backed stablecoin is presently being developed by Kraken. It will be distributed via its Irish subsidiary.

In the third quarter of 2025, Crypto.com also intends to introduce its own stablecoin. However, further details on both stablecoins are not known yet.

Explore: Tether Clashes With JPMorgan Over Bitcoin Sale Suggestion: Will Tether Sell BTC To Comply With US Stablecoin Regulations?

USDC Hits Record $56B Market Cap

USDC hit a record $56B market cap, a remarkable growth. It increased its market cap by 22% in just one month, adding $10.39 billion to circulation. This surge has propelled USDC past its previous 2022 peak, marking a full recovery from the 2023 banking crisis that temporarily shook investor confidence.

A major driver of USDC’s expansion is its growing use in Solana-based decentralized finance (DeFi) applications. Solana’s low fees and fast transactions have made it a favorite for traders, and USDC is becoming the stablecoin of choice for liquidity pools, swaps, and lending protocols.

Meanwhile, USDT (Tether)—the market’s largest stablecoin—expanded by only 3.4% ($4.67 billion) in the same period. With USDC’s circulation up 78% year-over-year, outpacing every other major stablecoin, the demand for this digital dollar is at an all-time high.

Explore: USDC Hits Record $56B Market Cap: A New Era for Stablecoins?

Key Takeaways

Kraken, one of the leading cryptocurrency exchanges globally, has announced plans to launch its own stablecoin pegged to the US dollar. The coin will be issued through Kraken’s subsidiary in Ireland, a country known for its favorable regulatory environment and robust financial infrastructure.

Similarly, Crypto.com has revealed its plans to introduce its own stablecoin in the third quarter of 2025. The exchange aims to expand its presence in Europe by offering a compliant alternative that meets the requirements of MiCA.