Ripple May Want to Issue EUR Stablecoin, MiCA Responsible: Community

U.S. crypto heavyweight Ripple could be pressured to issue its own stablecoin pegged to EUR, along with some of its rivals in the cross-border remittances sector.

U.S. fintech decacorn Ripple might have no choice but to launch its own personal stablecoin pegged to the Euro (EUR) due to some limitations imposed by Markets in Crypto Assets Regulation (MiCA). XRP community fans, meanwhile, are speculating whether XRP could be useful in tackling the new obstacles.

Ripple might launch own EUR stablecoin, MiCA to blame: Community

U.S. crypto giant Ripple might be forced to launch its own stablecoin pegged to EUR, along with some of its competitors in the cross-border remittances segment. Such insights were shared by XRP and Ripple community activist Crypto Eri (@sentosumosaba in X) with her 240,000 followers.

New stablecoin architecture plans are prompted by the restrictions envisaged by Markets in Crypto Assets Regulation (MiCA) legislation package. It not only limits the volume in non-EUR stablecoins to €1 million per day but also imposes a €200 million cap.

Thus, Ripple's potential USD-pegged stablecoin will hit these limits quickly, and it probably won't be enough to service the demand in cross-border remittances.

Another Ripple/XRP community member @WKahneman highlights that these limits are "too low" for Ripple's services and speculates whether the XRP coin could find its use in the new architecture:

Wow that seems to be a very low buying and selling quantity. They’re forcing huge co’s to make use of/create a EUR stablecoin. Is sensible Ripple would supply one. I ponder if it additionally creates a scenario the place XRPL/XRP capabilities are extra in demand?

It is also worth noting that Ripple is participating in the Digital Euro Association (DEA) as a supporting partner to provide consulting and infrastructure services to ECB stablecoin projects.

Ripple's stablecoin plans brewing since 2024

Currently, EUR-pegged stablecoins comprise a tiny fraction of the segment. For instance, the largest Euro stablecoin, Stasis Euro, sees its capitalization sitting at $137 million in equivalent,

Tether's and Circle's EUR-centric products boast a $70 million market capitalization combined, which is nearly 2,000x lower compared to their USD-pegged assets.

As covered by U.Today previously, Ripple announced the launch of its USD-pegged stablecoin last April. The new asset will be using the ticker RLUSD and is set to be backed by cash and its equivalents.

Ripple's Monica Long stressed that the upcoming asset will not be competing with XRP as a cross-border transfers instrument but will be “complementing” it instead.

XRP's price is up by 5.9% in the past 24 hours; the coin touched a local high above $0.60.

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