Global stablecoin issuer Circle Internet Group and German multinational corporation Deutsche Börse Group have unveiled their collaboration to expand stablecoin adoption in Europe.
According to the joint statement, the collaboration aims to bring “new solutions” for market participants in Europe by connecting token-based payment networks with traditional financial market infrastructure. It also seeks to advance the regulated adoption of stablecoins in European markets.
Co-Founder, Chairman, and CEO of Circle, Jeremy Allaire, affirmed that the collaboration will “advance the use of regulated stablecoins across Europe’s market infrastructure—reducing settlement risk, lowering costs, and improving efficiency for banks, asset managers, and the wider market.”
“As clear rules take hold across Europe, aligning our regulated stablecoins, EURC and USDC, with trusted venues will unlock new products and streamline workflows across trading, settlement, and custody,” he added.
As the announcement noted, the initiative is enabled by the European Union’s (EU) Market in Crypto Assets Regulation (MiCAR), the bloc’s comprehensive framework for cryptocurrencies, which covers areas such as the issuance and custody of digital assets. Circle also highlighted its status as the first major global issuer to achieve compliance with MiCAR.
According to the report, the European Systemic Risk Board (ESRB) recently passed a recommendation to ban jointly issued stablecoins, people familiar with the discussions told the news media outlet.
At the heart of this controversy lies a fundamental tension between regulatory ambition and market reality. The European Central Bank (ECB), backed by key members of the European Parliament (EP), argues that multi-issuance structures could undermine the prudential safeguards that MiCA was designed to establish, potentially exposing European holders to risks from third-country issuers and weakening EU monetary sovereignty. The European Commission, meanwhile, has sought to resolve the matter through internal administrative procedures, avoiding the political debate that the ECB and EP believe is necessary.
Arnal considers that “this institutional standoff has created regulatory paralysis with far-reaching consequences,” which risks “undermining MiCA’s credibility as a coherent and globally influential regulatory framework – just as other jurisdictions, notably the US, are establishing clear and competitive alternatives.”
