Ireland-based electronic money institution (EMI) DECTA is joining forces with France-based fintech Next Generation to launch a new Euro-pegged stablecoin, ‘EURT’.
DECTA and Next Generation explained that EURT is fully compliant with MiCA requirements and will operate on the Stellar blockchain, as well as three other platforms.
Next Generation is closely affiliated with Tempo France, another European fintech which initially launched EURT with the Stellar Foundation as one of the first stablecoins in 2017. However, the stablecoin project was eventually suspended due to a lack of regulatory framework. Implementing MiCA provides new opportunities and a green light for this project.
Under the new MiCA rules, which took effect on 1 July 2024, the issuance of Euro-pegged stablecoins like EURT is permitted exclusively to credit institutions or EMIs within the EU. DECTA Limited, with its EMI license from the Central Bank of Ireland, is ideally positioned as a pioneering issuer within these regulatory confines.
“The implementation of MiCAR has opened a new era in the history of the segment of modern digital finance in Europe,” explained Suren Hayriyan, president of Next Generation. “As the share of European coins is currently unfairly low, we will witness a very rapid increase in their positions. The demand for Euro stablecoins is extremely high. Companies, entrepreneurs and private users today lose a lot on forced conversions.
“I do not expect, of course, that we will soon see parity in the positions of American and European coins in the near future. But I have no doubt that there will be a rapid growth to the proportions in which these fiat currencies are now.”
Both firms are currently targeting launching EURT in October, aligning with strategic goals and regulatory milestones.
The importance of regulation
The partners believe there will no longer be room for unregulated Euro-denominated stablecoins. One large international auditing company plans to monitor the reserves. The regular publication of key financial indicators will reinforce transparency.
Based on market trends and the developed strategy, the companies expect to increase the market cap of EURT to up to $4billion in 2026 and maintain significant growth rates in subsequent periods.
Next Generation will manage key technological components of the strategic partnership, providing solutions for issuing, burning, and distributing EURT. The potential of the EURT project is an exciting opportunity for both companies. The enhancement of the regulatory environment for stablecoins in the EU with the introduction of MiCA is welcomed by both Next Generation and DECTA Limited.
Patrick Hayes, CEO at DECTA, also added: “Partnering with Next Generation on the EURT initiative would be an exciting opportunity for DECTA. As a regulated eMoney entity, our focus is always on ensuring client money is protected and managed correctly.”
The post DECTA Joins Forces With French Fintech to Revive Euro-Pegged Stablecoin appeared first on The Fintech Times.
