Kraken Considers Its Own Stablecoin Amid European Crackdown On Tether

Kraken is reportedly considering launching its own US dollar-pegged stablecoin, taking advantage of regulatory shifts in Europe that are pushing crypto exchanges to remove Tether’s USDT from their platforms.

According to Bloomberg, the exchange is exploring this move through its Irish subsidiary, though no official details have been disclosed. The plan comes as the European Union’s Markets in Crypto-Assets Regulation (MiCA) forces exchanges to delist non-compliant stablecoins, including USDT, from European markets.

Kraken began its USDT delisting process earlier this month, adjusting margin trading rules for European customers. The exchange has set a February 27 deadline for putting USDT in “sell-only” mode, followed by a full spot trading halt on March 24. Despite this, some European users say Kraken’s support team has reassured them that USDT is still available for trading.

While Kraken secured a MiFID license in Europe, it has yet to receive MiCA approval. Meanwhile, other exchanges, such as Crypto.com, which holds a MiCA license in Malta, are also planning to launch their own stablecoins by late 2025. The exchange joins Coinbase, which delisted USDT in December 2024.

MiCA mandates that non-compliant stablecoins be fully restricted by the end of Q1 2025, though exchanges will allow limited sell options until March 31.

Despite the delisting concerns, USDT remains the largest stablecoin, with a market cap of $142 billion. On Kraken, it continues to be a dominant trading asset, accounting for over 30% of the platform’s volume, according to CoinGecko.

Tether warned that MiCA-triggered changes could create an unstable market, increasing risks for European crypto users. The company pointed out that the regulation affects multiple tokens beyond USDT and that abrupt delistings could disrupt trading activity.

“As we have consistently expressed, some aspects of MiCA make the operation of EU-licensed stablecoins more complex and potentially introduce new risks,” Tether said.

Elsewhere, Kraken is reportedly in discussions with options exchange Deribit over a possible acquisition, despite reports suggesting the U.S. exchange walked away from the deal.

Kraken is reportedly looking to expand its trading offerings by entering the crypto derivative market, making Deribit an attractive target.