French startup Next Generation partners with an Irish financial institution Decta to restore the euro-pegged stablecoin, EURT, project after a seven-year suspension.
The project, put on hold due to a lack of regulatory frameworks, can now be implemented in accordance with EU’s Market in Crypto-Assets Regulation (MiCA).
Next Generation is closely linked to the original founder of the EURT project, Tempo France, through common shareholders and the ability to share all necessary resources. The startup will be responsible for managing key technological components of the strategic alliance, providing state-of-the-art solutions for issuing, burning, and distributing EURT.
Ireland-based electronic money institution Decta serves as a potential licensed issuer of the new stablecoin. EURT was initially launched with the Stellar Foundation in 2017. However, the project was suspended due to the absence of regulatory clarity in the region. Upon the re-launch, EURT will function not only on the Stellar blockchain but also on three other unnamed platforms.
With the introduction of the MiCA framework, the first compliant stablecoins started appearing in the Union. In July, Circle became the first stablecoin issuer to receive a French license for USDC and EURC.
The rules have made the segment predictable, transparent, and attractive to users, professional players, and investors,” said Suren Hayriyan, the president of Next Generation. Both project partners are welcoming the enhancement of the regulatory environment for stablecoins in the EU with the introduction of MiCA.
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.”
Suren Hayriyan, the president of Next Generation
Next Generation and Decta plan to launch the revived stablecoin in October 2024. According to the press release, the companies also expect to increase the market cap of EURT to up to $4 billion in 2026 and maintain significant growth later on.
Both partners are dedicated to transparency and regulatory compliance of their new projects. They claim to employ the highest level of cybersecurity and engage “one of the largest international auditing companies” to monitor the reserves. Besides, the two firms promise to publish the project’s key financial indicators regularly.
