Deutsche Börse and Circle are Integrating European Stablecoins

Deutsche Börse and Circle Collaboration

A memorandum of understanding was signed between Deutsche Börse Group (DB1) and Circle Internet Group (CRCL) with the aim of integrating regulated stablecoins into the European financial market infrastructure. This collaboration is being realized thanks to the EU's Markets in Crypto Assets (MiCAR) regulation. MiCAR is the world's first legal framework of its kind.

Integration of Stablecoins

With the signed agreement, Circle's euro and dollar-backed tokens, EURC and USDC, will be used in Deutsche Börse’s trading, payment, and custody services. This process will be carried out through the 360T and Crypto Finance units.

Stablecoin Activity in Europe

Recently, intense activity related to stablecoins has been observed in Europe. Société Générale’s subsidiary, FORGE, announced it expanded its stablecoins in the region. Additionally, several European banks have launched a euro-backed stablecoin.

MiCAR Regulation and its Effects

Circle is the first major global issuer to comply with the MiCAR regulation in Europe. This regulation will come into effect in June 2024, and the full legislative process will commence in late December.

Innovative Solutions

This initiative will begin the listing and trading of stablecoins on 360T’s digital exchange platform, 3DX. Furthermore, Clearstream will use Crypto Finance’s Germany-based entity as a secondary custodian in this process.

Jeremy Allaire, co-founder and CEO of Circle, stated about this collaboration, "Together with Deutsche Börse Group, we aim to advance the integration of regulated stablecoins into the European market infrastructure. This will reduce risks, lower costs, and increase efficiency for banks, asset managers, and the broader market."

Future Vision

This collaboration could enable institutions such as banks and asset managers to finalize transactions with tokenized euros or dollars, without relying on traditional payment systems. For European capital markets, it serves as an early test of whether stablecoins can become a trusted component within regulated financial infrastructure.