PANews reported on February 21 that according to Bloomberg, people familiar with the matter revealed that Kraken is exploring the development of its own stablecoin. The move is partly due to the competitive gap caused by new European regulations, which require crypto service providers to delist Tether's USDT and other unlicensed tokens. The person said the token will be pegged to the US dollar and issued by Kraken's Irish division.

The exchange announced this month that all non-compliant currencies held on Kraken’s European platform will be converted to “equivalent stablecoins” starting March 31. If all goes well, the token won’t be Kraken’s first foray into the digital dollar space. Late last year, the exchange joined a consortium called the Global Dollar Network, which partnered with Paxos to launch a stablecoin called USDG. Other members, like Robinhood and Galaxy Digital, are also developing their own stablecoins.

Meanwhile, Crypto.com unveiled its stablecoin plans in its 2025 roadmap last November, aiming to launch it in the third quarter. In addition, the exchange plans to launch the token in Europe, having informed customers last month that Tether would exit trading in the region at the end of March, another person familiar with the matter said.