Ripple’s RLUSD Poised to Replace USDT in Europe After MiCA Shake-Up
The post Ripple’s RLUSD Poised to Replace USDT in Europe After MiCA Shake-Up appeared first on Coinpedia Fintech News
The EU just lost its most traded stablecoin, USDT, thanks to MiCA regulations , and the crypto market is already feeling the ripple effect. Tether’s decision to pull USDT from top European exchanges stems from MiCA’s tight rules with no interest payouts, strict cash reserves, capped issuance/redemptions, and required links to EU banks.
With USDT gone, RLUSD might be the top contender poised to dominate, since Bitstamp, the leading European cryptocurrency exchange, has already listed RLUSD stablecoin , making it a prime fit.
As crypto analyst Jake Claver put it, “Tether took one look and said, ‘we’re out.’” And just like that, a $150 billion liquidity engine exited one of the largest crypto markets.
Ripple Moves In: RLUSD Grabs the Spotlight
Without USDT, Europe’s crypto trading landscape looks dented. Liquidity is drying up, and users are slowly shifting to platforms outside the EU. Meanwhile, he said Circle is stepping in with MiCA-compliant USDC and EURC, but their combined market size is still small compared to USDT. While Circle offers compliance, it lacks the scale to replace Tether’s dominance fully.
Claver explains, “USDC is compliant but small. Tether is massive but non-compliant. Ripple’s RLUSD brings the best of both worlds.”
USDC vs RLUSD: Who Can Fill Tether’s $150B Shoes?
Claver highlights that Ripple’s RLUSD stablecoin could quietly become the biggest winner in this scenario. RLUSD launched in December, fully compliant with MiCA, runs on both the XRP Ledger and Ethereum, and is supported by Ripple’s institutional partnerships. Unlike other projects focused on the US, Ripple had already built strong global connections, particularly in Asia, where regional stablecoins are gaining popularity.
However, Ripple’s early preparation is now paying off. RLUSD offers a rare combination of regulatory alignment and global reach. According to Claver, this positions Ripple as the most likely candidate to fill the stablecoin gap in the EU. With USDT stepping aside and Circle struggling to scale, Ripple has a clear opportunity to reshape the market.
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On the Contrary…
On crypto users, sKar PRIME responded by highlighting the broader market implications of Tether’s non-compliance with MiCA and the Genius Act . He suggested that Tether’s exit could trigger a larger domino effect across the crypto ecosystem. This disruption, he implied, might benefit assets like Bitcoin and potentially accelerate XRP’s rise by the end of the year, especially as regulatory-compliant alternatives step in to fill the gap left by USDT.
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FAQs
Tether withdrew USDT due to MiCA’s strict regulations, which impose tight rules on stablecoin issuers, including no interest payouts, strict cash reserves, capped issuance, and mandatory links to EU banks.
MiCA (Markets in Crypto-Assets Regulation) is a comprehensive EU framework that sets stringent rules for stablecoin issuers, demanding full reserves, regulatory authorization, and transparency to enhance consumer protection and market stability.
While USDC is MiCA-compliant, it lacks the scale to fully replace USDT. RLUSD, also compliant, offers a combination of regulatory alignment and Ripple’s global reach, positioning it strongly.
USDT’s exit is causing liquidity drying up and users shifting platforms. It may also benefit compliant assets like Bitcoin and potentially accelerate XRP’s rise as regulated alternatives fill the void.
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