Tether to end support for euro backed stablecoin EURT
Tether, the giant stablecoin-issuing company and the world’s largest stablecoin by market capitalization, is shutting down EURT, its euro stablecoin.
In a press statement on Wednesday, the company stated, "After careful consideration, we have made the decision to discontinue support for EUR₮." The post also stated that users will have until November 27, 2025, to redeem tokens.
Tether to shut down Euro Stablecoin
In 2016, Tether introduced EURT, a stablecoin that is 1:1 pegged with the value of the euro and offers a reliable investment in the unstable cryptocurrency market.
Tether has stopped minting EUR₮; the most recent acquisition request was handled in 2022, and it is no longer accepting requests for new EUR₮ issuance, the statement added.
Tether references stablecoin laws in Europe
The decision was made just before the EU's digital asset companies face a deadline to comply with the region-wide regulations known as Markets in Crypto-Assets (MiCA) by the end of 2024. Meanwhile, the firm that owns the $36 billion market capitalization USDC, rival issuer Circle, claimed to have met the necessary conditions to conduct business in the region.
The post stated that in light of the changing regulatory landscape surrounding stablecoins in the European market, this decision is consistent with Tether's broader strategic direction. The firm has opted to focus on other projects until a more risk-averse framework that encourages innovation and provides the stability and protection our users deserve is in place.
Stablecoin issuers must comply with MiCA or risk withdrawing from the 450 million-user market. In addition to not having the required Electronic Money Institution (EMI) license to conduct operations in the EU, Tether CEO Paolo Ardoino has been an outspoken opponent of the new regulations.
Tether to launch MiCA-compliant stablecoins EURQ and USDQ
Recently, Tether made an investment in Quantoz, a stablecoin issuer based in the Netherlands. Additionally, Tether launched Hadron, a tokenization platform designed to support smaller stablecoin companies that comply with MiCA in issuing tokens.
The launch of Quantoz Payments' groundbreaking MiCAR-compliant stablecoins, EURQ and USDQ, which will be powered by Tether's advanced technological solution, Hadron by Tether, is one of the ongoing initiatives that the firm will be focusing its support on, according to the post.
Low demand for EURT in the euro stablecoin market
The euro stablecoin market did not see a lot of demand for EURT. Compared to Circle's EURC $90 million and Stasis Euro's $130 million, it has a market capitalization of just $27 million, according to CoinGecko data at the time of writing. By comparison, USDT, the main stablecoin of Tether, has a market valuation of $132 billion.
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