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Tether to Shutter Euro Stablecoin as Key MiCA Deadline Looms
The firm's decision comes as crypto companies in the EU prepare to comply with region-wide digital asset rules by the end of this year..
Updated Nov 27, 2024, 2:59 p.m. Published Nov 27, 2024, 2:49 p.m.
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What to know:
- Tether said it will phase out its euro stablecoin, EURT. Users will be able to redeem tokens for up until one year from now.
- Instead, the company will focus on backing new stablecoin ventures such as its recent investment in Quantoz and its tokenization platform Hadron.
Stablecoin issuing giant Tether is closing down its euro stablecoin, EURT.
"After careful consideration, we have made the decision to discontinue support for EUR₮," the firm said in a press release on Wednesday. Users will be able to redeem tokens until Nov. 27, 2025, the post added.
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The decision comes as digital asset businesses operating in the EU are in crunch time before region-wide regulations, known as MiCA, enter into full force by the end of this year.
MiCA requires stablecoin issuers to get compliant or potentially retreat from the market of 450 million consumers. Tether CEO Paolo Ardoino has been a vocal critic of the new rules and the company has not obtained the necessary Electronic Money Institution (EMI) license to operate in the EU. Meanwhile, rival issuer Circle, the company behind the $36 billion market cap USDC, said it fulfilled the requirements to operate in the region.
EURT didn't attract considerable demand in the euro stablecoin market. It only has a $27 million market capitalization, per CoinGecko data, lagging behind Circle's EURC $90 million and Stasis Euro's $130 million. In comparison, Tether's flagship stablecoin USDT has a $132 billion market capitalization.
Tether recently invested in Netherlands-based stablecoin issuer Quantoz and also launched a tokenization platform, Hadron, that aims to support smaller, MiCA-compliant stablecoin companies to issue tokens.
"At this time we will be focusing our support on new ventures such as the launch of Quantoz Payments’ revolutionary MiCAR-compliant stablecoins, EURQ, and USDQ which will be powered by Tether’s advanced technology solution, Hadron by Tether," the firm said in a statement.
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