Stablecoin issuer Tether recently announced its decision to end support for its Euro-pegged stablecoin, EURt, in a statement released on Nov. 27.
Key Points:
- Tether has stopped minting new EURt tokens, with the last issuance request processed in 2022.
- Current holders of EURt can redeem their tokens until Nov. 27, 2025.
- EURt faced challenges in the market, with competitors like Circle’s MiCA-compliant EURC leading the way.
Market Comparison:
According to data from various sources, EURt struggled to gain traction in Europe, with a market capitalization of just $38 million. In comparison, Circle’s EURC is valued at $90.5 million, and Stasis’ Euro boasts a $130 million valuation.
On the other hand, Tether’s USDt stablecoin has a market cap of $132 billion, making it the leader in the stablecoin space.
Reasons for Ending EURt Support:
Tether CEO Paolo Ardoino cited Europe’s evolving regulatory landscape for stablecoins as the primary reason for discontinuing support for EURt.
EU’s Markets in Crypto-Assets Regulation (MiCA):
- MiCA introduces stringent regulatory requirements for stablecoin issuers, including the need to obtain e-money authorization in at least one EU member country.
- Ardoino expressed concerns about the strict cash reserve requirements under MiCA, which could pose risks to banks and digital assets.
In light of these regulatory challenges, Tether has decided to focus on other initiatives that align better with the evolving regulatory framework in Europe.
The Future with Hadron:
Despite discontinuing EURt, Tether is prioritizing its new initiative, Hadron, in the European region. Hadron aims to revolutionize asset tokenization for institutions, governments, fund managers, and private companies.
One example of Hadron’s success is Dutch fintech firm Quantoz, which has leveraged the platform to issue EURQ and USDQ stablecoins that comply with MiCA regulations.
Mentioned in this article:
- Latest Alpha Market Report
