Could Hedera’s HUSD Fill The Gap Left By USDT’s EU Exit?

USDT is being delisted from European exchanges by the end of the year. Hedera plans to launch HUSD, a MiCAR-compliant stablecoin.

HUSD aims to meet the EU’s growing demand for regulatory-compliant stablecoins. This would provide a timely alternative as the EU enforces stricter cryptocurrency regulations.

Can Hedera’s HUSD Fill the Gap Left by USDT’s EU Exit?

As a response to EU tightening cryptocurrency rules, Hedera will launch HUSD, which is an MiCAR-compliant stablecoin.

USDT’s delisting by European exchanges puts HUSD in a good position to pick up where USDT leaves off. As it can now provide a compliant stablecoin for users in the region.

Hedera is going after a regulated digital dollar to meet the EU’s evolving regulatory needs. This would support stablecoin solutions for projects and users across Europe.

🚨BREAKING: According to credible sources, $HBAR is launching an EU MiCAR compliant stablecoin called #HEUSD

After the $XRP #RLUSD, the Hedera Enterprise US Dollar is supposed to fill the gap on the European market, as USDT is being delisted in the EU on December 31st.… pic.twitter.com/UOvA8Mymxw

— Shawn (@oroogle) December 12, 2024

HUSD will comply with MiCAR standards as it will be launched via the Hedera stablecoin studio. Stablecoins will grow more essential to regional adoption as the EU imposes tighter crypto regulations.

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Hedera’s introduction of HUSD is in step with the market’s increasing need for stablecoins that meet European regulatory requirements. A dependable option in stablecoin is needed.

The launch trails similarly oriented stablecoins such as XRP’s RLUSD. This seeks to bring regulatory compliance to the European market through the stablecoin.

HBAR Futures Have Seen Open Interest Resurgence While Volume Remains Low

HBAR futures saw a small spike in open interest. Trading volume during the price rally on 12th December went from $279 million to $292 million.

This rally coincided with the anticipation surrounding Hedera’s new HUSD stablecoin, reflecting market optimism about its potential impact.

Looking back, after hitting peak on December 7th, open interest retraced. This meant a cooling-off phase as traders took profits and closed positions.

Source: Coinglass

The post-rally retraction, with HBAR’s trading volume dropping from $6 billion to $1.5 billion, reflects stabilization.

Source: coinglass

With the launch of HUSD, these fluctuations reflect the impact of Hedera’s move into the EU market. The retracement could also offer opportunities to traders waiting for further developments.

Will HBAR TVL Experience More Growth?

HBAR’s Total Value Locked (TVL) has seen explosive growth in 2024. It reached over $250 million, a strong indicator of growing confidence in the Hedera network.

The dramatic increase in TVL highlights the rising demand for decentralized finance (DeFi) applications on Hedera. The launch of the HUSD stablecoin may fuel further growth.

Source: DefiLlama

As HUSD enters the market, the increased liquidity from the rising TVL could support greater adoption and use of Hedera’s ecosystem in Europe.

The sharp rise in TVL in 2024 suggests that Hedera is becoming a major player in the DeFi space. With HUSD offering a MiCAR-compliant stablecoin solution.

As more projects integrate HUSD and Hedera’s DeFi solutions, the total value locked in the ecosystem may continue growing, signaling strong future prospects for the network.

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