Kaiko: Circle's stablecoin USDC will benefit from the adjustment of EU regulations

According to Bloomberg, cryptocurrency analysis firm Kaiko Research stated that Circle Internet Financial Ltd.'s US dollar stablecoin USDC could be the biggest beneficiary under the new European digital asset management guidelines set to take effect in July.

Kaiko analyst Anastasia Melachrinos said in a Tuesday conference call that she expects USDC will take market share from its larger competitor Tether Holdings Ltd.'s USDT. Stablecoins are primarily used by traders for transferring digital assets between exchanges or as a means of storing wealth away from token price volatility.