The MiCA regulation has increased demand for compliant stablecoins, with Circle’s USDC emerging as a primary beneficiary.
Kaiko reports that while non-compliant stablecoins currently dominate 88% of the market, MiCA is expected to shift preference towards compliant options.
Major exchanges like Binance and Kraken have started delisting non-compliant stablecoins for European users, boosting USDC’s traction.
USDC‘s weekly trading volume surged to $23 billion in 2024 from $9 billion in 2023. Circle, the company behind USDC, received an e-money license from France’s ACPR, making it the first global stablecoin issuer to comply with MiCA, covering both USDC and Euro Coin (EURC).
Centralized exchanges have significantly increased USDC volumes. After Binance re-listed USDC in March 2023, its market share on CEXs rose to over 90%.
Bybit’s zero-fee USDC trading also contributed to this rise. USDC’s growing use in settling perpetual futures contracts has further driven demand, with Bitcoin and Ethereum contracts denominated in USDC increasing substantially since January.
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