Tether, a prominent player in the cryptocurrency market, is undergoing a strategic transformation by discontinuing its euro-linked stablecoin, EURT. This move comes as the company aims to prioritize support for community-driven blockchain solutions in the face of increasing regulatory challenges in the European Union’s crypto landscape, particularly with the introduction of the Markets in Crypto-Assets (MiCA) regulations.
Understanding Tether’s Decision to Phase Out EURT
Tether has made the pivotal decision to cease support for its euro-denominated stablecoin, EURT, by November 27, 2025. This decision is largely attributed to the uncertain regulatory environment in the EU’s cryptocurrency market. Tether initially halted the minting of EURT in 2022, and the company is now preparing for a total phase-out. Current holders of EURT are encouraged to redeem their tokens before the deadline in 2025.
The company’s official statement highlights the need for a regulatory framework that balances innovation with stability and user protection. Until such a framework is in place, Tether has opted to concentrate on initiatives that align more closely with its strategic goals.
The Context Behind EURT’s Market Performance
EURT, launched in 2021, is one of Tether’s stablecoin offerings, alongside the widely recognized USDT, which is pegged to the U.S. dollar and commands a market value exceeding $132 billion. In contrast, EURT’s market presence is considerably smaller, with a market capitalization of approximately $26 million as of the latest data from CoinGecko.
EURT’s market cap experienced a significant decline from its peak of around $236 million in February 2022, a trend that continued through 2022 and 2023. This decline is partly due to regulatory pressures and market dynamics.
In June 2023, Bitstamp, one of the earliest exchanges to list EURT, announced its delisting, completing the removal by month’s end. This decision was in alignment with the exchange’s efforts to comply with the impending MiCA regulations.
Introducing MiCAR-Compliant EURQ and USDQ Tokens
In response to EURT’s discontinuation, Tether is partnering with Quantoz Payments to introduce two new stablecoins: EURQ and USDQ. These tokens are meticulously designed to align with the European Union’s MiCAR regulations, ensuring full compliance and regulatory peace of mind for users.
These new offerings will be supported by Tether’s advanced technology platform, Hadron. Hadron provides a robust infrastructure, facilitating seamless tokenization and enhancing the management of digital assets. It is equipped with compliance features, streamlined issuance processes, and extensive blockchain interaction capabilities, catering to a wide array of transactions including stablecoins, stocks, and loyalty points.
As Europe prepares for the full enforcement of MiCA regulations by the end of the year, the cryptocurrency landscape is witnessing the introduction of another euro-backed stablecoin. Schuman Financial, a new entrant in the cryptocurrency market founded by ex-Binance executives Martin Bruncko and Eduardo Morrison, has launched EURØP, a new euro-pegged stablecoin, as it emerges from stealth mode.
Overall, Tether’s strategic pivot underscores its commitment to navigating the evolving regulatory landscape while continuing to innovate and provide secure, compliant solutions for its users in the cryptocurrency space.
