Tether, the issuer of USDT,the largest stablecoin by market capitalization, has announced its decision to discontinue support for its euro-pegged stablecoin, EURT.
In a statement released on November 27, the firm cited evolving regulatory frameworks in the European stablecoin market as a key factor behind this decision.
MiCA Laws in Action
The decision comes as the European Union (EU) continues to enforce stricter cryptocurrency regulations, especially with the introduction of the Markets in Crypto Assets (MiCA) law, established in 2023.
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This law introduced a set of guidelines for stablecoins and other crypto assets within the region.
The company’s CEO Paolo Ardoino emphasized on social media that the move to phase out EURT was not taken lightly, noting the company’s plans to expand its Hadron platform, which supports tokenization of digital and real-world assets, aligning with the firm’s long-term goals in the European market.
Tether’s decision to delist EURt has not been taken lightly, but until a more risk-averse regulatory framework in Europe is in place—one that fosters innovation, offers the stability and protection our users deserve and avoids potential banking systemic risks—we have chosen to… https://t.co/WQWAeMwpbD
— Paolo Ardoino (@paoloardoino) November 27, 2024
Tether highlighted the need for a “risk-averse framework” that balances innovation with user protection. Until such a framework is in place, the firm plans to focus on other initiatives, including supporting MiCA-compliant stablecoins.
Tether’s Transition to MiCA-Compliant Stablecoins
While discontinuing EURT, the company has expressed its commitment to supporting projects compliant with MiCA. Among these are EURq and USDq stablecoins, developed by Dutch fintech firm Quantoz Payments.
In November 2024, Tether announced its support for Quantoz’s stablecoins, alongside notable partners such as Kraken exchange and Fabric Ventures. These stablecoins will leverage Hadron, a Tether-designed technology solution aimed at simplifying the creation and management of stablecoins.
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The company’s primary product, USDT, remains a cornerstone of the crypto market. The dollar-backed stablecoin allows traders to move in and out of crypto positions without relying on traditional banking systems. Running on multiple blockchain networks, including Ethereum, Solana, Tron, and Polygon, USDT dominates the stablecoin sector.