France-based Next Generation and Ireland-based electronic money institution (EMI) DECTA Limited have entered into a strategic partnership to launch the Euro-pegged stablecoin, EURT, which will be fully compliant with MiCA requirements. The new French firm is closely affiliated with Tempo France, a well-known European fintech player, through common shareholders and the ability to share all necessary resources. In 2017, Tempo France launched EURT with the Stellar Foundation as one of the first stablecoins. However, the project was later suspended due to a lack of regulatory framework. Implementing MiCA provides new opportunities and a green light for this project.

The flourishing digital asset market in the EU, now governed by the MiCA regulatory framework, offers a significant opportunity for collaboration between Next Generation and DECTA. Under the new MiCA rules, which took effect on the 1st of July, the issuance of Euro-pegged stablecoins like EURT is permitted exclusively to credit institutions or EMIs within the EU. DECTA Limited, with its EMI license authorized by the Central Bank of Ireland, is ideally positioned as a pioneering issuer within these regulatory confines.

Next Generation’s role will be to manage key technological components of the strategic alliance, providing state-of-the-art solutions for issuing, burning, and distributing EURT. The potential of the EURT project is an exciting opportunity for both companies, whose expertise, technical capabilities, and regulatory awareness are mutually complementary. The enhancement of the regulatory environment for stablecoins in the EU with the introduction of MiCA is welcomed by both Next Generation and DECTA Limited.

As the project progresses, the partners are targeting an estimated launch timeframe for the EURT in October, aligning with strategic goals and regulatory milestones.

An essential feature of EURT is that it will operate on the Stellar blockchain and three other platforms.

Source: DECTA