Tether, the issuer of the world’s largest stablecoin by market capitalization, announced on December 17 that it was investing in Malta-based stablecoin company StablR.
Tether, the issuer of the world’s largest stablecoin by market capitalization, announced on December 17 that it was investing in Malta-based stablecoin company StablR. The move comes as Europe prepares to fully implement its Markets in Crypto Assets (MiCA) regulations, which are expected to come into force on December 30, 2024.
StablR operates two stablecoins: StablR Euro (EURR), pegged to the Euro, and StablR USD (USDR), pegged to the US dollar. At the time of the investment announcement, EURR had a market capitalization of $3.4 million, representing approximately 1% of the total euro stablecoin market. USDR, however, was not listed on major crypto platforms like CoinMarketCap at that time.
The stablecoin company was founded in 2023 and recently obtained an Electronic Money Institution (EMI) license from the Malta Financial Services Authority, allowing it to issue fully compliant stablecoins under MiCA. This is a key step in StablR’s strategy to navigate the regulatory landscape, as MiCA requires issuers to meet strict reserves and governance compliance standards.
As part of the deal, StablR will operate Tether’s recently launched tokenization platform, Hadron. Hadron enables tokenization of various assets, including stablecoins, and provides compliance tools such as KYC, AML, and risk management. It also allows the transfer of stablecoins from StablR to Ethereum and Solana wallets.
In addition to the investment, StablR raised €3.3 million ($3.46 million) in a funding round, from investors including Deribit, Theta Capital, Blocktech and Folkvang. StablR plans to expand the availability of its stablecoins beyond Ethereum and Solana, increasing their interoperability.
Tether’s focus on supporting MiCA-compliant stablecoin projects like StablR marks a shift in its strategy. Rather than focusing on modifying its existing stablecoins to align with MiCA, Tether is investing in companies that are already compliant with the new regulations. This approach allows Tether to remain active in the growing European stablecoin market while avoiding regulatory conflicts.
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