In a statement on November 27, stablecoin issuer Tether announced plans to end support for the European-pegged stablecoin EURt.
The company stated that the last issuance request was processed in 2022 and it has stopped minting new EURt tokens. It continued that current holders of the asset can redeem their tokens until November 27, 2025.
This decision marks the end of EURt's challenging journey in a market dominated by competitors such as Circle's MiCA-compliant EURC.
According to crypto slate EURt has struggled to gain traction in Europe, with a market capitalization of just $38 million, according to the data. This figure is lower than Circle's EURC (valued at $90.5 million) and Stasis' Euro (valued at $130 million).
In stark 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 said the move was due to evolving regulations for stablecoins in Europe.
The EU's Markets in Cryptocurrency Regulation (MiCA) introduces a strict regulatory environment that requires stablecoin issuers to obtain e-money authorization in at least one EU member state. The law has drawn significant backlash from Ardoino, who argues that strict cash reserve requirements could pose systemic risks to banks and digital assets.
Mr. Ardoino emphasized the need for a framework that balances risk management with innovation and user protection. He said:
“Tether’s decision to delist EURt has not been taken lightly, but until a more risk-averse regulatory framework is in place in Europe, one that fosters innovation and provides users with the stability and protection they deserve, We have chosen to prioritize other initiatives until we have a framework in place to avoid potential banking system risks. ”
Although Tether may not be MiCA compliant, Ardoino noted that the company's new initiative, Hadron, will be a top priority in the European region. He said 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 the EURQ and USDQ stablecoins. These tokens are fully compliant with the EU's Crypto Asset Market Regulation (MiCA), demonstrating the platform's adaptability to stringent regulatory requirements.
