2024-11-28
Tether has decided to discontinue its
euro-pegged stablecoin, EURT, by November 27, 2025.
The decision was influenced by the
evolving regulatory frameworks in Europe, particularly the Markets in
Crypto-Assets (MiCA) regulations.
Tether has asked EURT holders to redeem their tokens within the given timeframe. Tether customers holding EUR₮ advised to redeem tokens by November 2025.
Tether, the issuer of USD₮ (USDT), the
world’s largest stablecoin by market
capitalization, has announced it will discontinue its euro-pegged stablecoin
EUR₮ (EURT).
The decision comes as part of the
company’s strategic realignment, citing
evolving regulatory conditions in Europe.
The firm revealed the move in an
official statement on November 27, asking EUR₮ holders to
redeem their holdings within a year, with a deadline set for November 27, 2025.
Tether has already ceased minting EUR₮ tokens, with
the last issuance request processed in 2022.
Regulatory Challenges in Europe
Tether’s decision is influenced by the
European Union’s emerging stablecoin regulations, particularly the Markets in
Crypto-Assets (MiCA) regulation, which is expected to come into full effect by
the end of 2024.
The company stated that until a
"more risk-averse framework is in place — one that fosters innovation and
offers stability and protection," it has chosen to prioritize other
initiatives.
Tether CEO Paolo Ardoino has previously
voiced concerns over MiCA, warning of potential systemic risks the regulations
could pose to stablecoins.
Focusing on MiCA-Compliant Alternatives
Tether will now focus on supporting new
projects that comply with MiCA regulations, such as EURQ and USDQ stablecoins
developed by Quantoz Payments, which are designed to comply with MiCA
regulations.
These tokens will leverage Tether’s
Hadron technology, a robust solution simplifying stablecoin creation and
management while ensuring compliance with anti-money laundering (AML)
standards.
The Hadron platform also supports
tokenization of diverse assets, such as stocks, bonds, and loyalty points.
Tether emphasized that investments in such projects align with its mission to redefine financial services, offering tools that enhance user adaptability and promote inclusivity in the global economy.
About EUR₮ and User
Redemption
Introduced in 2016, EUR₮ was pegged 1:1
to the euro, providing a stable alternative for users in a volatile
cryptocurrency market.
However, with a current market
capitalization of $27 million—accounting for
just 0.02% of Tether’s total
stablecoin market cap—the company has
decided to shift resources to higher-priority ventures.
Tether has reassured EUR₮ holders that
they can redeem their assets within the stipulated timeframe.
