Next Generation and DECTA join forces to relaunch Euro-pegged stablecoin

Next Generation and DECTA are teaming up to relaunch the Euro-pegged stablecoin EURT, leveraging the newly implemented MiCA regulations. This partnership aims to redefine the digital finance landscape in Europe, promising innovation, compliance, and significant market growth.

Editorial Team
August 5, 2024
3 minutes

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Announcements
Blockchain

France-based Next Generation and Ireland’s electronic money institution (EMI) DECTA have entered into a strategic partnership to relaunch the Euro-pegged stablecoin, EURT.

Initially launched by Tempo France in 2017, EURT was one of the first stablecoins but was suspended due to a lack of regulatory framework. The introduction of the Market in Crypto-Assets Regulation (MiCA) has now provided the necessary regulatory environment for its relaunch, scheduled for October 2024.

Under the new MiCA rules, which took effect on July 1, 2024, the issuance of Euro-pegged stablecoins like EURT is permitted exclusively to credit institutions or EMIs within the EU. DECTA, with its EMI license authorised by the Central Bank of Ireland, is ideally positioned as a pioneering issuer within these regulatory confines.

Next Generation will handle the technological development of EURT, providing solutions for issuing, burning, and distributing the stablecoin. The project aims to leverage the expertise, technical capabilities, and regulatory awareness of both companies.

An essential feature of EURT is that it will operate on the Stellar blockchain and three other platforms. The implementation of MiCA has opened a new era in modern digital finance in Europe, offering a significant opportunity for collaboration between Next Generation and DECTA.

As Suren Hayriyan, the president of Next Generation, stated, “The implementation of MiCAR has opened a new era in the history of the segment of modern digital finance in Europe. As the share of European coins is currently unfairly low, we will witness a very rapid increase in their positions. The demand for Euro stablecoins is extremely high. Companies, entrepreneurs and private users today lose a lot on forced conversions. I do not expect, of course, that we will soon see parity in the positions of American and European coins in the near future. But I have no doubt that there will be a rapid growth to the proportions in which these fiat currencies are now.”

Patrick Hayes, CEO at DECTA, added, “Partnering with Next Generation on the EURT initiative would be an exciting opportunity for DECTA. As a regulated eMoney entity, our focus is always on ensuring client money is protected and managed correctly.”

The partners believe that EURT will be distinguished by high innovation and compliance with modern realities. One of the largest international auditing companies plans to monitor the reserves, and the regular publication of key financial indicators will reinforce transparency.

The project aims to increase the market cap of EURT to up to $4 billion by 2026 and maintain significant growth rates in subsequent periods.