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Tether, a leading stablecoin issuer, has announced the discontinuation of its euro-pegged stablecoin, EUR₮, inviting holders to redeem their tokens by November 2025.
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This move marks a significant shift in Tether’s strategy amidst evolving regulatory landscapes in Europe, emphasizing compliance and user protection.
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Tether’s recent statement highlighted, “This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market.”
Tether discontinues its euro-pegged stablecoin EUR₮, urging holders to redeem by Nov. 25, 2025, amidst shifting European regulatory landscapes.
EUR₮ holders should redeem assets by November 2025
Initially launched in 2016, the EUR₮ (EURT) stablecoin was designed to maintain a value pegged to the euro at a ratio of 1:1, providing users with a stable asset amidst the volatility characteristic of the cryptocurrency market. As of now, the market capitalization of EUR₮ stands at approximately $27 million, representing a mere 0.02% of Tether’s flagship USD-pegged stablecoin, USD₮ (USDT).
The last issuance requests for EUR₮ were processed in 2022, and Tether has ceased accepting new requests, signifying a complete withdrawal from the euro-pegged market. “Community interest is central in our decision-making process for deploying Tether tokens,” Tether stated, reaffirming their commitment to user feedback.
Tether cites European stablecoin regulations
The withdrawal from EUR₮ is closely tied to the evolving regulatory landscape for stablecoins in Europe, particularly the implementation of the European Markets in Crypto-Assets Regulation (MiCA), anticipated to fully roll out by late 2024. Tether has announced that they aim to invest resources into initiatives that adapt to these new regulatory frameworks rather than continuing with a product that may face operational challenges.
In a prior statement, Tether’s CEO, Paolo Ardoino, expressed concerns about the MiCA regulations, indicating that they could introduce “systemic” banking risks to stablecoins. “Until a more risk-averse framework is in place — one that fosters innovation and offers stability — we have chosen to prioritize other initiatives,” he remarked.
Tether will focus on investing in MiCA-compliant stablecoins
In place of its euro stablecoin, Tether is now focusing on fostering new projects aligned with MiCA regulations, including supporting EURQ and USDQ stablecoins developed by Quantoz Payments, a Dutch fintech firm. Collaborations aimed at ensuring compliance and innovation, such as those formed with Kraken exchange and Fabric Ventures, highlight Tether’s commitment to adapting within a regulated environment.
Furthermore, Tether has disclosed that Quantoz’s stablecoins will utilize a bespoke technology solution named Hadron. This tool is designed to assist issuers in simplifying the creation and management of stablecoins while enhancing compliance and anti-money laundering capabilities.
“Through investments in projects like these, Tether isn’t just creating tools — we’re redefining what’s possible in finance, offering more adaptable and user-centric solutions that drive the evolution of a stable, inclusive financial ecosystem,” the company elaborated, showcasing its proactive approach to changing market conditions.
Conclusion
Tether’s decision to phase out the EUR₮ stablecoin showcases its strategic priority to align with regulatory developments in Europe and focus on compliant offerings. This transition not only highlights a response to evolving market dynamics but also emphasizes Tether’s commitment to enhancing user security and embracing regulatory compliance. Overall, the company aims to foster a more resilient and adaptable financial infrastructure moving forward.
