German securities marketplace Deutsche Börse has struck a deal with Circle, the issuer of USDC, to push stablecoin adoption across Europe’s financial markets, even as regulators weigh new restrictions.
The two firms signed a memorandum of understanding on Tuesday to integrate Circle’s euro-pegged EURC and dollar-pegged USDC into Deutsche Börse’s infrastructure. The initial rollout will focus on trading through 360T’s digital exchange 3DX and via Crypto Finance, both owned by Deutsche Börse.
Key Highlights
- Partnership enabled under the EU’s Markets in Crypto-Assets Regulation (MiCA).
- Circle already MiCA-compliant, unlike rival stablecoin issuer Tether.
- Project covers trading, settlement and custody, including via Clearstream.
- Deal coincides with EU discussions over a potential ban on multi-issuance stablecoins.
MiCA clears the path
The partnership is made possible by MiCA, which took full effect in late 2024. Circle became the first global stablecoin issuer to achieve compliance under the framework in July that year.
Circle’s co-founder and CEO Jeremy Allaire said the collaboration was aimed at reducing settlement risk, lowering costs and improving efficiency for banks, asset managers and the wider market. He added that aligning EURC and USDC with trusted European venues would pave the way for new products while streamlining trading, settlement and custody workflows.
The deal also extends to custody solutions through Clearstream, Deutsche Börse’s post-trade business, with Crypto Finance acting as sub-custodian.
Regulators eye multi-issuance ban
The agreement comes as European authorities debate stricter oversight. Bloomberg reported that the European Systemic Risk Board (ESRB), which is linked to the European Central Bank, recently recommended a ban on multi-issuance stablecoins — tokens issued under the same brand both inside and outside the EU.
The recommendation, backed by central bank governors and EU officials, is not legally binding but could increase pressure for formal restrictions. A senior Bank of Italy official also warned that multi-issuance models could expose the bloc to legal, liquidity and operational risks.
Winners and resisters
While Circle has embraced MiCA, rival Tether has refused to comply, citing issues with the EU’s reserve requirements. Tether’s USDT remains the world’s largest stablecoin by market capitalization.
Despite regulatory uncertainty, local adoption continues. On Tuesday, Société Générale-Forge, the crypto arm of the French bank, announced the launch of its own stablecoins — USD CoinVertible (USDCV) and EUR CoinVertible (EURCV) — on decentralized finance platforms Morpho and Uniswap.