Revolut is launching a euro stablecoin into a market MiCA handed to an American company

Revolut is launching a euro-backed stablecoin, entering a market that European regulation has spent two years accidentally consolidating around a single American issuer.

The neobank is also one of the 36 firms the ECB picked for its digital euro pilot, which means it is now building the private euro token and helping test the public alternative to it at the same time.

The regulatory backdrop is what makes this interesting. MiCA requires major stablecoin issuers to hold at least 60% of reserves in EU bank deposits, a rule designed to keep euro stablecoins anchored in Europe.

Tether declined authorisation because its model depends on US Treasuries, leaving Circle’s USDC and EURC as the only stablecoins holding e-money token authorisation in the European regulator’s register.

So the rule intended to protect European monetary sovereignty delivered the European market to a US-regulated company whose reserves sit largely in US Treasury instruments.

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