Cryptocurrency exchange Kraken is reportedly exploring the launch of its own stablecoin as European regulations push crypto firms to delist Tether’s USDt from their platforms.
Kraken’s stablecoin would be pegged to the US dollar, Bloomberg reported on Feb. 20, citing sources familiar with the matter who were not authorized to discuss the topic publicly.
The move is partly triggered by a gap in competition created by the European Union’s Markets in Crypto-Assets Regulation (MiCA), which requires crypto asset service providers (CASPs) in Europe to delist USDt (USDT) and other non-MiCA-compliant tokens.
According to the report, Kraken is looking to issue its potential US dollar stablecoin through its unit in Ireland. The exchange previously revealed plans to launch its own blockchain dubbed “Ink” in early 2025.
Has Kraken started delisting USDt?
Kraken previously announced plans for a gradual USDt delisting in the European Economic Area (EEA) in early February, citing a “fast-moving regulatory landscape.”
The exchange said it would set USDt margin pairs to “reduce-only” for EEA clients, after which it would only allow customers to reduce or fully close out existing margin positions.
In line with its efforts for a smooth delisting process, Kraken said it plans to put USDt in “sell-only” mode by Feb. 27 and eventually halt all spot trading for the stablecoin on March 24.
Kraken’s delisting roadmap for non-MiCA-compliant stablecoins. Source: Kraken
Despite these plans, some Kraken users in Europe — including one with whom Cointelegraph spoke directly — have reported that customer support has reassured them that USDt remains available on the exchange.
While Kraken received a European Markets in Financial Instruments Directive (MiFID) license in early February, the exchange has yet to receive a MiCA license.
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Cointelegraph reached out to Kraken for comment regarding its USDt delisting process and potential stablecoin plans but did not receive a response by the time of publication.
USDt remains the top coin on Kraken
The European Union ban on USDt has led several exchanges to consider launching their own stablecoins.
Crypto.com — which received a MiCA license in Malta — has also announced plans to launch its own stablecoin by the third quarter of 2025.
Despite the delisting issues, USDt remains the world’s largest stablecoin and the fourth-largest digital asset, with a $142 billion market cap.
Top five trading pairs on Kraken as of Feb. 21. Source: CoinGecko
According to data from CoinGecko, USDt also remains the top digital asset on Kraken, with USDT/USD and USDT/EUR trading pairs accounting for more than 30% of the exchange’s trading volumes.
In January 2025, Kraken enabled USDt transfers to USDT0, Tether’s new crosschain USD stablecoin.
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