The company which supports tether USD₮ (USDt), the largest stable coin by its market cap, announced that it will stop supporting tether EUR₮ (EURT), the euro pegged stable coin as well. The decision on November 27 orders EUR₮ holders to redeem tokens by November 25, 2025.
No EUR₮ issuance requests will be processed by the company anymore and the last acquisition was done only in 2022, the company confirmed. The reason for the move, Tether said, is related to evolving European regulations, especially the Markets in Crypto Assets Regulation (MiCA), due to be introduced shortly.
The expected full take effect of MiCA in late 2024 imposes stricter requirements on stablecoins, leading Tether to rethink the offerings in the region.
Tether CEO Criticizes MiCA, Backs Alternative Projects
“We’re focusing on other initiatives until we have a risk-averse framework that enables innovation and stability,” Tether said, pointing to necessity of a regulatory environment that balances innovation with protecting users.
Launched in 2016, EUR₮ aimed to provide a stable digital asset pegged 1:1 to the euro. However, EUR₮ found it difficult to gain popularity, with a market cap of only $27 million and a 0.02 per cent USD₮ valuation.
Previously, MiCA came in for criticism from Tether’s CEO Paolo Ardoino, who has called the stablecoin policy proposed by the European Union’s MiCA as “possibly harmful to the financial ecosystem”. USDT still has a vision to serve the European market through like minded fintech projects like Quantoz Payments, a Dutch fintech company building the native MICA compliant stablecoins, EURQ, and USDQ.
USDT supported Quantoz’s initiatives in November and pledged its Hadron technology would streamline stablecoin issuance and management. USDT is rolling out plans to improve compliance and anti money laundering features and drive innovation within regulatory frameworks, and hadron promises to integrate enhanced blockchain capabilities.
They said Tether was ‘redefining financial possibilities’ and creating adaptable, user centered solutions for a stable, inclusive ecosystem.
The phaseout of EUR₮ by USDT serves as a pivot to projects that are ready to align with evolving regulations, as they actively work to steer clear of the choppy waters across global cryptocurrency.
