Tether’s investment in StablR, a euro-backed stablecoin, aims to expand the use of stablecoins in Europe ahead of the EU’s 2024 Digital Asset Regulations, making stablecoins like EURR and USDR more accessible and compliant with the new rules.
Tether has strategically invested in StablR, a European startup focused on euro-denominated stablecoins. The partnership is set to increase the use of stablecoins across Europe, especially with new EU regulations on digital assets set to come into effect in 2024.
Why is this investment important?
Stablecoins are digital currencies that are pegged to real assets such as the US dollar or the euro. They provide stability and make them less volatile than other cryptocurrencies.
Tether’s investment in StablR is a sign of the company’s commitment to promoting stablecoins in Europe, especially as the region prepares for the upcoming Markets in Crypto-Assets (MiCA) regulation, which will regulate cryptocurrencies and stablecoins in the European Union.
StablR, which has already been licensed in Malta to issue MiCA-compliant stablecoins, will use Tether’s token conversion platform, Hadron, to facilitate the conversion of traditional assets into digital tokens.
By transforming it, it will allow companies to create digital versions of stocks, bonds, commodities, and more while generally complying with legal regulations.
The Role of StablR and the Future of Stablecoins
StablR offers two types of stablecoins: EURR, pegged to the euro, and USDR, pegged to the US dollar. Both stablecoins are available on popular blockchain networks such as ERC-20 and Solana, and trade on different platforms.
With the help of the Tether platform, StablR plans to expand its offerings and make stablecoins available on more blockchain networks, allowing more people and businesses to use them.
The stablecoin market is growing especially in countries with unstable economies, and Europe is also showing increasing interest, as many are looking for alternatives to traditional banking systems.
Tether’s investment in StablR comes as crypto exchanges adapt to new regulations in Europe (MiCA) that require stablecoin issuers to meet strict compliance and transparency standards.
Tether’s investment in StablR helps bring stablecoins like EURR and USDR into the European financial system. Backed by Tether, the partnership facilitates the use of stablecoins and ensures they follow cryptocurrency rules.
