The Ripple Effect: How RLUSD May Steal Tether’s Crown in Europe
The European Union has just kissed goodbye to its most traded stablecoin, USDT, all thanks to the MiCA regulations. And let me tell you, the crypto world is already feeling the tremors. Tether decided to pull its USDT from top European exchanges like a high-rolling gambler walking away from the table because MiCA’s rules were a little too tight for comfort. No interest payouts, strict cash reserves, capped issuance, and, oh, mandatory links to EU banks. What a hoot! 
And so, with USDT out the door, RLUSD is strutting in like the new kid on the block ready to take over. Bitstamp, Europe’s premier cryptocurrency exchange, has already rolled out the red carpet for RLUSD, making it the most likely contender to take the crown. Talk about a golden opportunity. 
Jake Claver, the ever-sarcastic crypto analyst, put it bluntly: “Tether took one look and said, ‘we’re out.'” And just like that, $150 billion worth of liquidity is gone from one of the largest crypto markets in the world. I guess Tether’s idea of “going big or going home” just got a whole lot easier. 
The EU lost its most widely-used stablecoin with USDT being pulled from major exchanges across Europe, all thanks to new MiCA regulations—and Tether’s decision not to play along. That opens up a huge opportunity in the market. But the real question is: who’s going to benefit? The…
— Jake Claver, QFOP (@beyond_broke) May 22, 2025
Ripple’s RLUSD: The New Stablecoin Sheriff in Town
Without USDT in the picture, Europe’s crypto market is looking a little worse for wear. Liquidity is drying up faster than a puddle on a hot day, and users are already hopping over to platforms outside the EU. But, fear not! Circle’s stepping in with USDC and EURC, both compliant with MiCA, but let’s be real—they’re just a bit too small to completely fill USDT’s giant shoes. While Circle plays by the rules, it’s missing the scale to replace Tether’s dominance. 
Claver explains, “USDC is compliant but small. Tether is massive but non-compliant. Ripple’s RLUSD brings the best of both worlds.”
RLUSD vs USDC: The Battle for Tether’s $150B Throne
But here comes Ripple’s RLUSD, slipping in like a stealthy hero ready to clean up the mess. Launched in December, fully compliant with MiCA, running on both the XRP Ledger and Ethereum, and with Ripple’s prestigious institutional partnerships behind it—RLUSD is a force to be reckoned with. Ripple already had global connections, particularly in Asia, where regional stablecoins are becoming all the rage. Take that, Circle! 
Ripple’s early planning is now paying off big time. The RLUSD combines regulatory compliance with a global reach, positioning it as the most likely candidate to fill the hole left by USDT in the EU. While Tether packs up and heads home, and Circle struggles to play catch-up, Ripple is ready to grab the wheel and steer the ship. 
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On the Contrary…
And in typical crypto fashion, the world of speculations continues. sKar PRIME pondered the impact of Tether’s non-compliance with MiCA and the Genius Act, suggesting that the whole crypto ecosystem could be in for a wild ride. If the dominoes fall just right, this could mean a sweet, sweet rise for Bitcoin—and maybe, just maybe, XRP will skyrocket before the year’s out. Because when things get crazy, the whole market just loves to throw in a few surprises. 
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FAQs
Why did Tether (USDT) withdraw from top European exchanges?
Tether packed its bags and left because MiCA’s tough regulations came with strict rules, no interest payouts, cash reserves, capped issuance, and a must-link to EU banks. Couldn’t do it. 
What is MiCA and how does it affect stablecoins in the EU?
MiCA is the EU’s heavy-handed regulation framework for stablecoins. It demands full reserves, regulatory authorization, and transparency, all in the name of consumer protection and market stability. Because, you know, we can’t have nice things without some rules. 
How does RLUSD compare to Circle’s USDC in the EU market?
Well, USDC is compliant but small. RLUSD, also compliant, has both the regulations and the global reach, putting it in a prime position to take over. Take that, Circle. 
What are the broader implications of USDT’s departure for the EU crypto market?
With USDT gone, liquidity is drying up, and users are heading to new platforms. This may just create room for Bitcoin and other compliant assets like XRP to rise, as they step in to fill the void. Better buckle up, folks! 
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2025-05-22 09:05