Next Generation and Decta team up to create a new euro stablecoin
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Next Generation, an up-and-coming French startup, recently teamed up with an Irish electronic money institution, Decta. The partners intend to create a new euro-pegged stablecoin known as EURT.
EURT revived: The new crypto regulations will allow the project to take off
EURT is an old project dating back to 2017, but at the time, its development was suspended due to the lack of regulatory frameworks. Now, however, Next Generation decided to revive it, and it went to Decta for help on taking the project off the ground.
The reason why Next Generation is the one picking up the shelved project is the fact that it is closely affiliated with Tempo France, EURT’s original founder. The two firms are tied through common shareholders and the ability to share the resources.
As for the timing, the project’s revival came close after the introduction of the European Union’s Market In Crypto-Assets (MiCA) regulation, which created a suitable environment for the project to take a second try.
The plan is to launch EURT on the Stellar blockchain, alongside three other platforms. Meanwhile, its reserves will be closely monitored by one of the largest international auditing firms, as promised by Next Generation.
The future of EUR-backed stablecoins
Commenting further on the project, Next Generation said that transparency will be further reinforced by regular publications of key financial indicators. The company plans to draw in support for the project by partnering up with strong and reputable financial institutions. This will provide new opportunities for depositing and withdrawing funds.
Next Generation’s president, Suren Hayriyan, stated that the implementation of MiCA has opened a new chapter in the history 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,” Hayriyan added.
She also said that the current market trends suggest that EURT could have a potential market cap of up to $4 billion by 2026. Meanwhile, the total stablecoin market cap on a global level right now, in August 2024, exceeds $160 billion. But, only $280 million comes from EUR-pegged stablecoins, meaning that launching a EUR-based stablecoin now could help fill that gap, and bring more attention to euro stablecoins.
As for Next Generation, the company said that EUR-backed stablecoins will see the market cap reach to $15 billion in 2025, $70 billion in 2026, and $2.5 trillion by 2029. Hayriyan added that she doesn’t expect to see parity in the position of USD and EUR-backed stablecoins anytime soon, but euro stablecoins will get a much larger share of the market than what they have today.
