Tether, the issuer of the world’s largest stablecoin, has announced a pivotal decision to phase out its euro-linked EURT stablecoin. This move is part of a “strategic transition to prioritize community-driven blockchain support.” The decision comes at a time of increasing regulatory uncertainty within the European Union’s cryptocurrency market, driven by the new Markets in Crypto-Assets (MiCA) regulations. Let’s delve into the details of this transition and what it means for the future of Tether’s offerings.
Tether Moves Towards Regulated Stablecoin Solutions
As a frontrunner in the stablecoin sector, Tether is poised to make significant changes to its product lineup. The company has announced that it will cease support for its euro-denominated stablecoin, EURT, by November 27, 2025. This decision is primarily influenced by challenging regulatory conditions in the EU’s cryptocurrency market.
The minting of EURT came to a halt in 2022, and Tether is now gearing up for its complete discontinuation. Current holders of EURT are advised to redeem their tokens by the November 2025 deadline. Tether 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.”
Launched in 2021, the EURT stablecoin was issued by Tether, the same company behind USDT, the largest stablecoin by market value pegged to the U.S. dollar. USDT is currently valued at over $132 billion. In contrast, EURT has maintained a modest market presence, with its market capitalization standing at approximately $26 million, according to CoinGecko. The stablecoin’s market cap has significantly declined from its peak of around $236 million in February 2022, particularly during 2022 and 2023.
In June, Bitstamp, one of the earliest exchanges to list EURT in November 2021, announced its delisting, which was finalized by the end of that month. This decision aligns with Bitstamp’s commitment to comply with MiCA regulations.
Tether Prepares for MiCAR-Compliant EURQ and USDQ Tokens
In the wake of discontinuing EURT, Tether has partnered with Quantoz Payments to introduce two new stablecoins, EURQ and USDQ. These tokens are designed to adhere to the European Union’s Markets in Crypto-Assets (MiCAR) regulations.
The technological backbone supporting the new EURQ and USDQ stablecoins is Tether’s cutting-edge platform, Hadron. This platform represents a significant technological leap, offering tools that streamline the tokenization process and enhance the management of crypto assets. Hadron is engineered to provide robust compliance features, smooth issuance processes, and comprehensive blockchain interaction capabilities. It facilitates a spectrum of transactions, from stablecoins to stocks and loyalty points, ensuring a secure infrastructure for digital assets.
As Europe nears the final enforcement deadline for the Markets in Crypto-Assets Regulation (MiCA) by the year’s end, another euro-backed stablecoin is making its entrance. Schuman Financial, a new cryptocurrency firm founded by former Binance executives Martin Bruncko and Eduardo Morrison, has officially launched EURØP, a new euro-pegged stablecoin, after emerging from stealth mode.
