Tether Ends Support for Euro-Pegged EURT Stablecoin

Tether, the issuer of the world’s largest stablecoin, has announced the discontinuation of its euro-pegged stablecoin, EURT, across all blockchains. This decision comes in response to evolving regulatory frameworks in Europe, particularly the European Union’s Markets in Crypto-Assets (MiCA) regulation.

Launched in 2016, EURT was designed to provide a euro-backed stable asset for crypto markets, pegged 1:1 to the euro. However, with a market capitalization of just $27 million—0.02% of USDt’s market cap—EURT has seen limited adoption compared to its USD-backed counterpart.

The European Union’s MiCA regulation, set to take full effect by the end of 2024, imposes stringent requirements on stablecoin issuers, including compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. Tether’s decision to discontinue EURT aligns with these regulatory developments, as the company aims to prioritize initiatives that foster innovation while ensuring user stability and protection.

Read more about MiCa regulation here.

In light of the discontinuation of EURT, Tether is shifting its focus to supporting MiCA-compliant stablecoins. This includes EURQ and USDQ, developed in partnership with Dutch fintech firm Quantoz Payments. These new stablecoins are designed to offer secure and efficient transactions within the European market, adhering to the regulatory standards set forth by MiCA.

The EURQ and USDQ stablecoins will be issued and managed on Tether’s Hadron platform, which streamlines the process of creating stablecoins and other tokenized assets. Hadron incorporates pre-built compliance features, making it a robust solution for tokenizing stocks, bonds, and stablecoins. This technology ensures that token issuers, including Quantoz, can operate within regulatory frameworks while maintaining efficiency and security. 

Tether’s strategic transition to compliant solutions like EURQ and USDQ addresses the needs of the evolving digital economy and aims to strengthen its position in the stablecoin market. By focusing on projects that align with regulatory standards, Tether continues to support the development of a stable and inclusive financial ecosystem.