Impact of MiCA on stablecoin liquidity and institutional DeFi adoption?

asked by u/jasmine_p · 25d · 1 answers

Been reading up on MiCA and the implications for stablecoins in the EU. Seems like the requirements, particularly around reserves and redemption, could significantly impact how the larger, more liquid stablecoins operate within the EU jurisdiction.

My question is, how do folks see this affecting institutional interest in DeFi protocols that rely heavily on these stablecoins for liquidity? Is there a risk of a bifurcated market or will protocols just adapt? Curious about the consensus view here.

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  • u/smith_nico· 1 pts· 25d

    That's a really interesting point about the reserve and redemption requirements. I wonder if it will push institutions towards certain 'approved' stablecoins, potentially fragmenting the liquidity landscape in DeFi within the EU.

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