Next Generation and DECTA have agreed to enter a strategic alliance to issue a Euro-pegged stablecoin that fully complies with the latest MiCAR regulations. This project merges French blockchain technology with an Irish-issued EMI, poised to augment the financial landscape.
Next Generation is closely affiliated with Tempo France, a 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 1 July 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 authorized by the Central Bank of Ireland, is well 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 solutions for issuing, burning, and distributing EURT. The project’s potential is an 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.
As the project progresses, the partners are targeting an estimated launch timeframe for the EURT in October 2024, 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.
Officials from Next Generation explained that the implementation of MiCAR has opened a new era in the history of modern digital finance in Europe. As the share of European coins is unfairly low, there will be a rapid increase in their positions. The demand for Euro stablecoins is high. Companies, entrepreneurs, and private users today lose a lot on forced conversions. They expect to see parity in the positions of American and European coins in the near future.
DECTA looks forward to bringing its expertise to collaborate with Next Generation, ensuring that their combined strengths will meet all the regulatory and market demands outlined by MiCA. DECTA is committed to driving innovation and trust in the stablecoin market, providing a robust and reliable digital asset on which users and investors can depend.
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