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The European crypto market is undergoing a seismic shift following Tether’s decision to exit the region due to strict MiCA regulations. With USDT—the world’s most traded stablecoin—pulling out of top European exchanges, Ripple’s RLUSD is rapidly emerging as the leading candidate to fill the $150 billion void.
Tether’s Exit Creates a Stablecoin Vacuum
MiCA (Markets in Crypto-Assets) legislation, set to take full effect in July 2024, mandates tight controls on stablecoin issuers, including requirements for full backing by cash reserves, capped redemptions, and strict links to EU-based financial institutions. Tether chose to sidestep these compliance hurdles by halting support for USDT in the EU, creating a liquidity vacuum that’s already affecting local trading volumes.
Crypto analyst Jake Claver summed it up sharply: “Tether took one look and said, ‘we’re out.’” In doing so, a $150B liquidity engine disappeared overnight, forcing exchanges and users to scramble for alternatives.
The EU lost its most widely-used stablecoin with USDT being pulled from major exchanges across Europe, all thanks to new MiCA regulations—and Tether’s decision not to play along. That opens up a huge opportunity in the market. But the real question is: who’s going to benefit? The… pic.twitter.com/aqM5WWYTPg
— Jake Claver, QFOP (@beyond_broke) May 22, 2025
RLUSD and USDC: The Race to Replace USDT
Ripple’s RLUSD stablecoin, launched in December 2023, is already listed on Bitstamp—Europe’s top crypto exchange—and is fully MiCA-compliant. It operates across both the XRP Ledger and Ethereum networks and is backed by Ripple’s robust network of institutional partnerships.
Meanwhile, Circle’s USDC and EURC are also vying for market share, but analysts note that while Circle’s offerings are compliant, they lack the scale and momentum needed to fully replace USDT’s dominance in Europe.
“USDC is compliant but small. Tether is massive but non-compliant. RLUSD brings the best of both worlds,” says Claver.
Ripple’s Global Strategy Pays Off
Ripple’s early focus on global markets, especially in Asia, is now giving it a competitive edge. RLUSD combines regulatory compliance with an expanding international reach, making it a frontrunner in the new European stablecoin race.
As Circle works to expand and Tether retreats, RLUSD is uniquely positioned to dominate in a post-MiCA Europe. With institutional trust and exchange listings already in place, Ripple may soon define the future of stablecoins in the EU.
Also Read: Ripple CEO Hails CME XRP Futures as Key Milestone for Institutional Adoption
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
