Tether to Phase Out Euro-Backed Stablecoin EURT Amid Regulatory Challenges
Tether, the issuer of the USDT stablecoin, has announced it will discontinue its euro-backed stablecoin, EURT, due to regulatory challenges in Europe. EURT holders have until Nov. 25, 2025, to redeem their tokens, and no new issuance requests have been accepted since 2022. The decision aligns with Tether’s concerns about the evolving regulatory landscape, including the European Union’s Markets in Crypto-Assets (MiCA) regulation.
EURT, launched in 2016 and pegged 1:1 to the euro, has seen its market capitalization decline significantly to $27 million, a fraction of USDT's dominance. At its peak, EURT exceeded $500 million in market cap but has since been surpassed by other euro-backed stablecoins such as Stasis’ EURS and Circle’s EURC. MiCA, approved in 2023, imposes strict rules on stablecoin issuers, including compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) standards, with full implementation expected by December 2024.
Tether has expressed its intent to focus on projects that promote innovation and financial stability. It has highlighted support for MiCA-compliant stablecoins such as EURQ and USDQ, developed by Quantoz Payments and enabled by Tether’s Hadron platform. The platform is designed to simplify stablecoin management while adhering to compliance requirements. Tether CEO Paolo Ardoino acknowledged the challenges posed by MiCA’s framework, describing them as complex and potentially risky for stablecoin issuers.
Tether’s decision comes amid broader scrutiny of stablecoins and allegations of misuse. A recent report alleged that USDT has been used by criminal organizations, including the Sinaloa cartel, for cross-border transactions. The claims cite court documents in several cases and highlight USDT’s role in facilitating transactions on blockchains like Ethereum and Solana. Despite criticism over potential misuse, USDT remains the most traded cryptocurrency, with a 24-hour trading volume of $83.7 billion.
The company has emphasized its commitment to protecting users and supporting a regulatory framework that mitigates risks. Ardoino noted that the decision to end EURT was strategic, allowing Tether to prioritize projects that meet market demands and regulatory standards. As MiCA’s regulations take hold, the stablecoin industry is adjusting, with exchanges like OKX already halting USDT services in some European regions.
Tether’s move marks a significant shift in the stablecoin landscape, as regulatory pressure reshapes the market. While EURT's exit reflects compliance challenges, Tether’s focus on MiCA-compliant initiatives signals its intent to remain a key player in the evolving cryptocurrency ecosystem.