The European Banking Authority (EBA) has classified Circle’s USDC as the EU’s first “significant” stablecoin under the MiCA regulation. This decision, announced on October 14, requires USDC to maintain at least 60 % of its reserves in bank deposits, compared to 30 % for other issuers, while capital requirements increase from 2 % to 3 % of reserves. With a market cap of approximately $73 billion, USDC generates 95 % of its revenue from interest on reserves. These new obligations could reduce Circle’s annual revenue by $30 to $90 million and require mobilizing up to $200 million in additional capital.
Source: Read the original article
Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
