Tether, the prominent issuer behind the world’s largest stablecoin, USDT, has announced a pivotal shift in its stablecoin offerings. As part of a strategic transition to prioritize community-driven blockchain support, Tether will cease support for its euro-linked stablecoin, EURT. This decision emerges amidst growing regulatory uncertainties in the European Union’s crypto market, particularly with the introduction of new Markets in Crypto-Assets (MiCA) rules.
Tether Moves Towards Regulated Stablecoin Solutions
In a significant move, Tether has declared its intention to phase out the EURT stablecoin by November 27, 2025. This decision is influenced by the challenging regulatory environment within the EU’s cryptocurrency market. Having halted the minting of EURT in 2022, Tether is now gearing up for a complete cessation of this euro-denominated stablecoin. Current EURT holders are advised to redeem their tokens by the specified deadline in 2025.
The company emphasized in a press release, “Until a more risk-averse framework is in place—one that fosters innovation and offers the stability and protection our users deserve—we have chosen to prioritize other initiatives.” This statement underscores the company’s commitment to providing a secure and innovative environment for its users.
Launched in 2021, EURT was Tether’s venture into euro-linked stablecoins. However, it has struggled to gain substantial market traction, especially when compared to USDT, which boasts a market value exceeding $132 billion. As of the present, EURT’s market capitalization stands at approximately $26 million, a significant decline from its peak of $236 million in February 2022.
In a related move, Bitstamp, one of the initial exchanges to list EURT in November 2021, announced its delisting of the stablecoin in June. The removal was completed by the end of that month, aligning with the company’s efforts to comply with MiCA regulations.
Tether Prepares for MiCAR-Compliant EURQ and USDQ Tokens
In light of the EURT discontinuation, Tether is proactively advancing towards the future with the introduction of two new stablecoins, EURQ and USDQ. In a strategic partnership with Quantoz Payments, these tokens are set to adhere to the European Union’s Markets in Crypto-Assets (MiCAR) regulations, ensuring full compliance and offering a robust alternative to the EURT.
Supporting these new ventures is Tether’s Hadron technology platform, a groundbreaking innovation that facilitates the tokenization process and enhances the management of crypto assets. Hadron is equipped with advanced compliance features, streamlined issuance processes, and extensive blockchain interaction capabilities, offering a secure infrastructure for a variety of digital assets ranging from stablecoins to stocks and loyalty points.
As Europe nears the enforcement deadline for the MiCA regulations, the landscape for euro-backed stablecoins is evolving. Notably, Schuman Financial, a new player in the cryptocurrency arena founded by former Binance executives Martin Bruncko and Eduardo Morrison, has introduced a new euro-pegged stablecoin, EURØP, marking a significant development in the market.
In conclusion, Tether’s strategic transition towards community-driven blockchain solutions and MiCAR-compliant offerings signifies a pivotal moment in the crypto industry. By prioritizing innovation and regulatory compliance, Tether aims to continue its leadership in the stablecoin market while adapting to the evolving regulatory landscape in Europe.
