Tether has decided to discontinue support for its euro-pegged stablecoin, EUR₮ (EURT). The company announced on Nov. 27 that it would cease all minting of EUR₮ tokens across blockchains and has urged holders to redeem their assets by Nov. 25, 2025.
This decision aligns with Tether’s strategy to adapt to evolving regulatory frameworks in Europe, particularly the Markets in Crypto-Assets Regulation (MiCA), expected to come into full force by late 2024.
Details on EUR₮ Discontinuation
Key Announcements
No New Issuance: The last EUR₮ acquisition request was processed in 2022, and no new issuance requests are accepted.
Redemption Deadline: EUR₮ holders have until November 2025 to redeem their tokens.
Market Impact
EUR₮ currently has a $27 million market cap, representing only 0.02% of USD₮'s market dominance.
The decision reflects limited community interest in EUR₮ and Tether's focus on prioritizing other initiatives.
Regulatory Challenges Driving the Decision
Tether’s move comes as Europe tightens stablecoin regulations under MiCA. The company highlighted the need for a “risk-averse framework” that fosters innovation while ensuring user protection.
Tether CEO Paolo Ardoino has criticized MiCA, suggesting that the framework poses “systemic banking risks” for stablecoins. Until a more stable regulatory environment emerges, Tether plans to focus on alternative initiatives.
Tether's Future in Stablecoins
Investments in MiCA-Compliant Projects
Tether remains committed to supporting new projects that comply with MiCA regulations. Notable efforts include:
EURQ and USDQ stablecoins by Dutch fintech Quantoz Payments.
The Hadron tool, a Tether-designed technology solution that simplifies stablecoin creation while ensuring compliance and robust blockchain interaction.
Strategic Focus
“Through investments in innovative projects, Tether is redefining financial possibilities, creating tools that foster a stable and inclusive ecosystem,” the company stated.
A Shift in Strategy
Tether’s discontinuation of EUR₮ reflects a broader strategic pivot toward compliance and innovation in a rapidly evolving regulatory landscape. While EUR₮ users have a one-year window to redeem tokens, Tether’s investments in MiCA-compliant stablecoins signal its ongoing commitment to shaping the future of finance.