Kraken Reportedly Exploring Launch of Its Own Stablecoin as European Regulations Push Crypto Firms to Delist Tether’s USDt From Their Platforms

Kraken's stablecoin would be pegged to the US dollar, Bloomberg reported on Feb. 20, citing sources familiar with the matter

Cryptocurrency exchange Kraken is reportedly planning to launch its own stablecoin, pegged to the US dollar, as part of a move triggered by European regulations that are pushing crypto firms to delist Tether’s (USDT) stablecoin from their platforms.

According to a Feb. 20 report by Bloomberg, citing sources familiar with the matter, Kraken is said to be aiming to launch its potential stablecoin through its unit in Ireland.

The exchange had previously revealed plans to launch its own blockchain, dubbed “Ink,” in early 2025.

According to the report, the exchange is looking to issue its potential US dollar stablecoin through its unit in Ireland.

Kraken previously revealed plans to launch its own blockchain dubbed “Ink” in early 2025.

As part of a broader effort to fully comply with European crypto regulations, Kraken announced plans for a gradual USDt delisting in the European Economic Area (EEA) in early February.

The exchange stated that it would set USDt margin pairs to “reduce-only” for EEA clients, allowing them to only reduce or fully close out existing margin positions.

Later in February, USDt would be placed in “sell-only” mode on the exchange, and by March 24, all spot trading for USDt would be halted.

However, some Kraken users in Europe have reported that customer support has indicated that USDt is still available on the exchange.

Kraken received a European Markets in Financial Instruments Directive (MiFID) license in early February, but it is still awaiting a Markets in Crypto-Assets Regulation (MiCA) license.

Cointelegraph reached out to Kraken for comment on its USDt delisting process and potential stablecoin plans, but we did not receive a response by the time of publication.

The European Union’s ban on several non-MiCA-compliant stablecoins, including USDt, has led several exchanges to consider launching their own stablecoins.

Crypto.com, which received a MiCA license in Malta, has also announced plans to launch its own stablecoin by Q3 2025.

Despite the regulatory hurdles, USDt remains the top stablecoin and the fourth-largest digital asset by market capitalization, with over $142 billion.

Top five trading pairs on Kraken as of Feb. 21. Source: CoinGecko

According to data from CoinGecko, USDt is still the top digital asset on Kraken, with the USDT/USD and USDT/EUR trading pairs contributing to over 30% of the exchange’s trading volume.

In January 2025, Kraken enabled USDt transfers to USDT0, a new crosschain USD stablecoin by Tether.