Kraken Considers Launching USD-Pegged Stablecoin Amid Regulatory Pressure in Europe

Cryptocurrency exchange Kraken is exploring the launch of its own US dollar-pegged stablecoin, according to a Bloomberg report on February 20. This move is partly driven by the European Union's Markets in Crypto-Assets Regulation (MiCA), which is pushing crypto firms to delist Tether's USDt. Kraken's potential stablecoin would be issued through its Ireland unit. Kraken previously announced plans for a gradual USDt delisting in the European Economic Area (EEA) in early February, citing a "fast-moving regulatory landscape." The exchange plans to put USDt in "sell-only" mode by February 27 and halt all spot trading for the stablecoin on March 24. Despite these plans, some Kraken users in Europe reported that USDt remains available on the exchange. USDt remains the top digital asset on Kraken, with USDT/USD and USDT/EUR trading pairs accounting for more than 30% of the exchange's trading volumes.