Key Takeaways:

• ClearBank is the first Dutch bank to gain a license.
• Offers direct on-/off-ramping thanks to a partnership with Circle.
• Initially offers USDC and EURC, with plans to include more.

ClearBank Europe has become the first Dutch credit institution to secure approval as a crypto asset service provider (CASP) under the EU’s landmark Markets in Crypto-Assets (MiCA) regulation.

ClearBank’s EU clients can now convert traditional fiat to stablecoins and back again directly through their bank accounts.

ClearBank makes on-/off-ramping easy

Instead of offering stablecoins that the bank can acquire from the market, ClearBank has partnered with Circle, a MiCA-compliant stablecoin issuer. The bank will be using Circle’s Mint protocol, generating backed stablecoins on the go as per users’ requirements.

This avoids the traditional stablecoin acquisition path. This involves moving money between a bank and an exchange, increasing the time and adding to the overall service fees.

ClearBank offers Circle’s USDC (USDC) and ERC (EURC) stablecoins, with plans to add more MiCA-compliant ones in the future.

Learn More: What Makes a Stablecoin Stable? The Different Models Explained

The first Dutch-based CASP bank

ClearBank is the first-ever Dutch-based bank to obtain a MiCA license as a crypto-asset service provider (CASP). It’s originally a UK Financial Conduct Authority (FCA)-registered cloud bank, founded in 2017.

ClearBank Europe is its EU subsidiary, authorized to operate within the union’s jurisdiction by the European Central Bank (ECB) from 2024. Its latest report shows that it handles over 10 billion British pounds ($16.26 billion).

While the bank is registered in the Netherlands, the MiCA license enables it to cater to clients across the entire EU.

Related: South Korea Plans to Apply Existing Finance Laws to Stablecoins and Asset Tokens

Stablecoin use is on the rise

ClearBank is one of the many institutions that are turning toward stablecoins this year.

Possessing the stability of their underlying fiat (hence the name) but using the speed, reliability, and low transmission costs of blockchain has put this class of cryptocurrency in the crosshairs.

Five banks in the US are already working toward providing tokenized deposits (which represent fiat and, therefore, a type of stablecoin) to their users. A European alliance is also launching a EUR stablecoin.

However, some EU nations, such as France, are seeing stablecoins as a threat to the euro currency, deciding to limit non-EUR stablecoin use.

Beyond banks, stablecoins are also seeing increased interest in the overall crypto sphere. Stablecoin supply on Ethereum has already recorded a massive $180 billion, with projections that say it can go as high as $850 billion by the end of the decade.

USDC, the stablecoin by Circle, hit 1 billion unique transactions in March, more than any other stablecoin.