- Deutsche Börse partners with Circle to integrate EURC and USDC stablecoins into European market infrastructure.
- The collaboration leverages MiCA compliance to enable trading, settlement, and custody through 3DX and Clearstream.
- The move comes amid European discussions on multi-issuer stablecoin restrictions, highlighting regulatory and operational considerations.
German securities marketplace Deutsche Börse has partnered with USDC issuer Circle to support stablecoin adoption across European financial markets. The collaboration aims to integrate Circle’s euro-pegged EURC and dollar-pegged USDC stablecoins into Deutsche Börse’s infrastructure, with an initial focus on trading through its 3DX digital exchange and via Crypto Finance.
According to a joint announcement, the memorandum of understanding establishes a framework for listing, trading, and custody of Circle’s stablecoins. The initiative comes amid discussions in Europe regarding potential restrictions on multi-issuer stablecoins, which could affect companies like Circle and Paxos.
MiCA framework enables the partnership
The collaboration is facilitated by the European Union’s Markets in Crypto-Assets Regulation (MiCA), which took full effect in late 2024. Circle became the first global stablecoin issuer to comply with MiCA rules, as announced by CEO Jeremy Allaire in July 2024.
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Allaire stated that the partnership aims to “advance the use of regulated stablecoins across Europe’s market infrastructure 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 venues would unlock new products and streamline trading, settlement, and custody processes.
In addition to 3DX trading, the collaboration plans to enable custody through Deutsche Börse’s post-trade business, Clearstream, using Crypto Finance as a sub-custodian.
European authorities consider multi-issuance stablecoin restrictions
The partnership coincides with reports that European authorities are contemplating a ban on multi-issued stablecoins tokens issued under a single brand both inside and outside the EU. The European Systemic Risk Board (ESRB) has reportedly recommended restrictions due to potential legal, operational, and liquidity risks, though the guidance is not legally binding.
While Circle achieved MiCA compliance, Tether issuer of USDT, the largest stablecoin by market capitalization opted not to comply, citing local reserve requirements. Meanwhile, European companies are actively adopting compliant stablecoins, with Société Générale-Forge recently deploying USD CoinVertible (USDCV) and EUR CoinVertible (EURCV) on decentralized finance protocols including Morpho and Uniswap.
