Stablecoin issuer Tether announced plans to end support for its euro-pegged stablecoin, EURt, in a November 27 statement.
The company said it has stopped minting new EURt tokens, with the last issuance request processed in 2022. It also added that current holders of the asset can redeem the tokens until November 27, 2025 .
The move marks the end of EURt’s difficult journey in a market dominated by competitors like Circle’s MiCA-compliant EURC.
According to CryptoSlate According to the data, EURt has struggled to gain traction in Europe, with a market capitalization of just $38 million. This figure is behind Circle’s EURC, valued at $90.5 million, and Stasis’ Euro, which has a valuation of $130 million.
In contrast, Tether’s flagship stablecoin, USDt, boasts a solid market capitalization of $132 billion, more than three times that of its closest competitor, USDC.
Why Tether is ending EURt support
Tether CEO Paolo Ardoino attributed the move to the changing European regulatory landscape for stablecoins.
The European Markets in Crypto-Assets (MiCA) Regulation introduces a strict regulatory environment that requires stablecoin issuers to obtain e-money authorization in at least one EU member country. The law has drawn significant backlash from Ardoino, which says the strict cash reserve requirements could pose systemic risks for banks and digital assets.
Ardoino highlighted the need for a framework that balances risk management with innovation and user protection. He declared:
“Tether’s decision to delist EURt was not taken lightly, but until a more prudent regulatory framework in Europe is in place – one that promotes innovation, provides stability and the protection our users deserve and avoids potential systemic banking risks – we have chosen to prioritize other initiatives.
Even though Tether might not comply with MiCA, Ardoino emphasized that the company’s new initiative, Hadron, will be a top priority in the European region. According to him, Hadron has the potential to revolutionize the accessibility of asset tokenization for institutions, governments, fund managers and private companies.
Dutch fintech company Quantoz has already leveraged Hadron to issue EURQ and USDQ stablecoins. These tokens are fully compliant with the European Markets in Crypto-Assets (MiCA) regulations, demonstrating the platform’s adaptability to strict regulatory requirements.
