The post Tether Discontinues EURT Stablecoin Due to Regulatory Climate in the EU appeared first on Coinpedia Fintech News

Tether, issuer of the world’s largest stablecoin, said that it will stop supporting the euro-linked EURT stablecoin as part of a “strategic transition to prioritize community-driven blockchain support.” This decision came amid rising regulatory uncertainty in the EU’s crypto market with the new MiCA rules.

Tether Moves Towards Regulated Stablecoin Solutions

Tether, a leader in the cryptocurrency stablecoin market, has announced a significant move in its product offerings. The company will discontinue its euro-denominated stablecoin, EURT, by November 27, 2025.

The decision to phase out EURT was influenced by several factors, primarily the unfavorable regulatory conditions in the EU’s crypto market. Tether ceased the minting of EURT in 2022 and is now preparing for a complete cessation. Tether has pointed out the importance of current EURT holders redeeming their tokens by 27 November in 2025.

The press release stated, “Until a more risk-averse framework is in place—one that fosters innovation and offers the stability and protection our users deserve—we have chosen to prioritize other initiatives.”

Launched in 2021, EURT is issued by Tether, the same company that runs USDT, the largest stablecoin by market value, which is pegged to the U.S. dollar and currently valued at over $132 billion.

In contrast, EURT has a much smaller market presence, with a market capitalization of just about $26 million at the time of writing, according to CoinGecko. The stablecoin has experienced a notable decrease in market cap since its peak at around $236 million in February 2022, particularly throughout 2022 and 2023.

In June, Bitstamp, which was among the first exchanges to list EURT back in November 2021, announced the delisting, with the removal completed before the end of that month.

The company stated that this move was in alignment with its efforts to comply with the MiCA regulations.

Tether Prepares for MiCAR-Compliant EURQ and USDQ Tokens

In response to the discontinuation of EUR₮, Tether has announced a partnership with Quantoz Payments to launch two new stablecoins, EURQ and USDQ. These tokens are designed to be fully compliant with the European Union’s Markets in Crypto-Assets (MiCAR) regulations.

Supporting the new EURQ and USDQ stablecoins is Tether’s innovative technology platform, Hadron by Tether. This platform brings a significant technological advancement, providing tools that smoothens the tokenization process and enhance the management of crypto assets.

Hadron is designed to offer robust compliance features, smooth issuance processes, and extensive blockchain interaction capabilities. It offers a range of transactions, from stablecoins to stocks and loyalty points, ensuring a secure infrastructure for digital assets.

As Europe approaches the final enforcement deadline of the Markets in Crypto-Assets Regulation (MiCA) by the end of the year, another euro-backed stablecoin is making its debut.

Schuman Financial, a new cryptocurrency firm established by former Binance executives Martin Bruncko and Eduardo Morrison, has officially launched a new euro-pegged stablecoin, EURØP, after coming out of stealth mode.