Tether, the world's largest issuer of USDT stablecoin, celebrated its 10th anniversary on Monday (October 7). USDT has become a stablecoin with a market value of nearly $120 billion. There are rumors in the market that USDT may be delisted from the European Coinbase exchange, and Tether plans to launch a new technical solution for the European market to comply with the EU's MiCA regulations. Tether is about to launch new technical solutions designed specifically for the European market to adapt to the region's changing regulatory environment. The plan was revealed amid rumors that USDT may be delisted from Coinbase Europe. According to Tether in a statement on Friday: "As we have always said, certain aspects of MiCA make the operation of EU-licensed stablecoins more complicated and may bring new risks to local banking infrastructure and stablecoins themselves.
"Tether is developing a technology-based solution that we will announce in due course and will be tailored to the needs of the European market," the company added. "We are very excited about our upcoming product strategy." Coinbase has set December 30, 2024 as the EU stablecoin compliance deadline. After the designated date, the exchange will delist non-compliant stablecoins in the European Economic Area (EEA), and this change will not affect other regions. The decision is part of Coinbase's ongoing efforts to comply with MiCA regulations. Prior to Coinbase, several cryptocurrency exchanges such as OKX, Bitstamp and Uphold terminated services for non-compliant stablecoins in the EU before MiCA was fully implemented.
Tether CEO Paolo Ardoino previously explained that the company is still discussing with regulators concerns related to the strict cash reserve requirements imposed by the MiCA regulation. He warned that strict requirements could pose systemic risks to banks and digital assets, making them vulnerable to large-scale withdrawals, similar to the situation at Silicon Valley Bank. Although Tether said that some aspects of MiCA could pose challenges for EU-licensed stablecoins, the company praised EU regulators for creating a structured regulatory environment that is critical to the growth of the industry. Tether pointed out: "In the European market, the use cases for stablecoins are very different from those in emerging markets and developing countries where USDT is very popular.
The European economy is stable and well-structured. In addition, with the introduction of MiCA, the regulatory environment is also changing. Tether appreciates the efforts of EU regulators in establishing a structured framework as it plays a key role in promoting the growth of the industry. "To celebrate its 10th anniversary, Tether's official Twitter post announced that it will soon launch a documentary (Stability and Freedom in Chaos), and said that the film will delve into how USDT has become a lifeline for millions of people, fighting inflation and promoting global financial freedom.
In its trailer, Tether interviewed residents of countries affected by high inflation, such as Turkey, Brazil, and Argentina, and recorded how they used USDT to combat the unstable economic environment, trying to present the role of USDT as a digital dollar and emphasize its ease of use. A Brazilian interviewee mentioned that about 90% of local transactions were conducted through USDT, reflecting the widespread use of USDT in daily transactions in Brazil. Paolo emphasized that Tether's mission is simple, which is to provide inclusive financial services to billions of people, mainly living in developing countries, who cannot have bank accounts (because they do not generate enough income for traditional banking) or live in countries with high inflation.
He continued: "Our focus has always been (and will always be) the last mile. The rich already have dozens of ways to trade and store wealth. We build financial technology for the neglected. Tether has become a symbol of disintermediation, resilience and stability. From financial instruments (stablecoins) to telecommunications, from artificial intelligence (AI) to unstoppable education and energy, we believe in the importance of empowering people, communities, cities and even entire countries." Currently, Tether is not only the leading issuer of stablecoins, it also continues to expand its business scope. In April, it announced the establishment of four independently operated business units, focusing on four major areas: data, finance, energy and education. It also launched its venture capital unit, Tether Evo, with investments covering renewable energy, Bitcoin mining, AI, education and other fields.
