Tether announced that it will gradually stop supporting its euro stablecoin EURT, allowing users to redeem it within the next year. This move is in response to the upcoming EU MiCA regulations, which require digital asset companies to comply with new regulatory requirements. Tether's CEO Paolo Ardoino criticized the new regulations, pointing out that the company has not yet obtained the electronic money institution (EMI) license required to operate in the EU. Meanwhile, competitor Circle has met the requirements to operate in the EU.
Key Points
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Tether has decided to stop supporting its euro stablecoin EURT, with users able to redeem it by November 27, 2025.
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This decision is in response to the upcoming implementation of the EU MiCA regulations, which require stablecoin issuers to comply with the new rules.
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Tether's EURT has not gained significant demand in the market, with a market cap of only $27 million.
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Tether recently invested in the Dutch stablecoin issuer Quantoz and launched a tokenization platform called Hadron to support MiCA-compliant stablecoin businesses.
Background of Tether's Decision
Tether's decision comes against the backdrop of the EU's imminent full implementation of the MiCA regulations. The MiCA regulations require all digital asset companies operating in the EU to comply with new regulatory standards, or face the risk of exiting the market. Tether's CEO Paolo Ardoino expressed dissatisfaction with these new rules, believing they will have a significant impact on the company's operations.
Market Performance of EURT
According to CoinGecko, Tether's EURT has not gained significant demand in the euro stablecoin market, with a market cap of only $27 million, far below its competitor Circle's EURC ($90 million) and Stasis Euro ($130 million). In contrast, Tether's main stablecoin USDT has a market cap of $132 billion.
Tether's Future Plans
Despite stopping support for EURT, Tether has not given up on its plans in the stablecoin space. The company recently invested in the Dutch stablecoin issuer Quantoz and plans to support the token issuance of small stablecoin businesses compliant with MiCA through its newly launched tokenization platform Hadron. Tether stated that it will focus on supporting the MiCA-compliant stablecoins EURQ and USDQ launched by Quantoz Payments, with these new projects utilizing Tether's advanced technology solutions Hadron by Tether.