Traditional banks tap into the billion-dollar stablecoin market to rival Tether’s dominance
The post Traditional banks tap into the billion-dollar stablecoin market to rival Tether’s dominance appeared on BitcoinEthereumNews.com.
Traditional banks such as Societe Generale, Standard Chartered, and Revolut are now reaching for a slice of Tether’s dominance of the stablecoin market. The opportunity became especially apparent after Tether’s decision to discontinue its EURt stablecoin. For years, Tether Holdings has led the charge of stablecoins reshaping the global finance space. However, as traditional finance increasingly opens up to the crypto space, banks are also making the move to test the stablecoin issuance waters. Bloomberg reported that these banks will be looking to fill the chasm created as Tether Holdings discontinues its EURt stablecoin. Tether launched the EURt stablecoin in 2016. However, unlike the firm’s leading product USDT, the EURt failed to meet expectations and struggled to gain traction after its launch. Its market capitalization declined to an almost irrelevant figure of $37M compared to USDT’s market cap of over $138B. Tether Holdings announced in November that it will discontinue the EURt stablecoin in accordance with the new Market in Crypto-Assets (MiCA) regulations in Europe. All aboard the stablecoin train Tether’s $10B in net profits has proven to be a major incentive for traditional banks, who are wasting no time in making their moves. Societe Generale-Forge (SG-Forge) has already launched a Euro-backed stablecoin (EURCV) and opened the product to retail investors. Oddo BHF, BBVA, and Revolut are exploring releasing their versions of euro-denominated stablecoins. AllUnity also plans to issue another euro-based stablecoin next year. MiCA has provided a clear regulatory framework for stablecoins and crypto assets in the EU, making it easy for companies and banks to issue their stablecoins. This clarity also created an allowance for competition in the stablecoin market, especially as Tether continues to drag its feet with meeting all the standards of the new European regulation. Jean-Marc Stenger, CEO of SG-FORGE, confirmed that multiple banks are…
Filed under: News - @ December 29, 2024 4:20 am