cryptojournalist
Tether, the company behind USDt, the world’s largest stablecoin, has announced it will stop supporting its euro-backed stablecoin, EURt. Holders have until November 2025 to redeem their tokens. This move comes as Tether adjusts to new regulatory changes in Europe.
Why Is Tether Discontinuing EURt?
Launched in 2016, EURt was designed to provide a stable digital asset tied to the euro. However, Tether’s decision to phase it out reflects the growing regulatory uncertainty in Europe regarding stablecoins. EURt currently makes up a small portion of Tether’s overall market, with a market cap of just $27 million compared to the $1.00 price tag of USDt, the company’s main stablecoin.
Tether’s CEO, Paolo Ardoino, has expressed concerns over new European regulations like MiCA (European Markets in Crypto-Assets), which is set to roll out in 2024. He believes the rules could pose risks for stablecoins.
What Should EURt Holders Do?
Tether is advising holders of EURt to redeem their tokens by November 2025. New issuance of EURt will stop, and users will have a year to exchange their holdings. Tether has emphasized that they considered feedback from the community in making this decision.
Tether’s New Focus on MiCA-Compliant Stablecoins
Rather than focusing on EURt, Tether is now shifting its attention to supporting projects that comply with the upcoming MiCA regulations. One of these is Quantoz Payments, which offers the EURq and USDq stablecoins. Tether has invested in these stablecoins, which are powered by a new technology solution called Hadron. This platform helps simplify stablecoin management and ensures compliance with legal requirements.
Tether’s new direction aims to create more flexible, user-friendly solutions that align with the evolving regulatory landscape in Europe.
