Ireland-based electronic money institution (EMI) DECTA is partnering with French fintech company Next Generation to introduce a new Euro-pegged stablecoin, ‘EURT’. The collaboration aims to create a fully compliant stablecoin that adheres to the Markets in Crypto-Assets (MiCA) regulations and operates on the Stellar blockchain, alongside three additional platforms.
Next Generation, which has close ties with Tempo France, previously launched EURT with the Stellar Foundation as one of the first stablecoins in 2017. However, the project was suspended due to the lack of a regulatory framework. The implementation of MiCA now provides a structured environment, facilitating the relaunch of this project.
As of 1 July 2024, the new MiCA regulations permit the issuance of Euro-pegged stablecoins exclusively by credit institutions or EMIs within the EU. With its EMI license from the Central Bank of Ireland, DECTA is well-positioned to be a pioneering issuer under these new regulations.
“The implementation of MiCA has ushered in a new era in the history of modern digital finance in Europe,” said Suren Hayriyan, president of Next Generation. “The demand for Euro stablecoins is extremely high. Companies, entrepreneurs, and private users today lose a lot on forced conversions. While I don’t expect immediate parity between American and European coins, I foresee rapid growth towards the proportions these fiat currencies hold now.”
The firms plan to launch EURT in October, aligning with strategic goals and regulatory milestones. The partners emphasise the significance of regulation, indicating that unregulated Euro-denominated stablecoins will no longer have a place in the market. A major international auditing firm will monitor the reserves, and regular publication of key financial indicators will enhance transparency.
Market trends and strategic projections suggest that EURT could reach a market cap of up to $4 billion by 2026, with significant growth expected in subsequent periods. Next Generation will manage key technological aspects, including the issuance, burning, and distribution of EURT, underscoring the potential and excitement surrounding this venture.
Patrick Hayes, CEO of DECTA, expressed enthusiasm about the partnership, stating, “Partnering with Next Generation on the EURT initiative is an exciting opportunity for DECTA. As a regulated eMoney entity, our focus is always on ensuring client money is protected and managed correctly.”
The launch of EURT represents a significant step forward in the European digital finance landscape, leveraging the new regulatory framework to meet growing market demands and enhance the stability and transparency of Euro-pegged stablecoins.
