Tether Discontinues Stablecoin EURT and Focuses on New Projects Amid European Regulations
- EURT phase-out by November 2025
- European regulation impacts stablecoins
- Tether focuses on new initiatives in the crypto market
Tether, the issuer of the world’s largest stablecoin, USDT, has announced that it will stop issuing its euro-pegged stablecoin, Euro Tether (EURT), due to regulatory challenges in Europe. The company said it has ceased issuing new EURT tokens and has set a deadline of November 25, 2025, for current holders to redeem their tokens.
Tether Updates Users on a Strategic Transition to Better Support Community-Driven Product Support
Learn more: https://t.co/YEAhg4SPsv— Tether (@Tether_to) November 27, 2024
EURT’s trading volume is relatively low, with just over $2 million transacted in the past 24 hours, according to data from CoinGecko. In comparison, USDT, a stablecoin pegged to the U.S. dollar, saw a trading volume of approximately $83,7 billion in the same period.
In an official statement, Tether said the decision is in line with its broader strategic direction, given the evolving regulatory frameworks surrounding stablecoins in the European market. The company noted that until a more risk-averse framework is implemented—one that fosters innovation and offers the stability and protection its users deserve—it has chosen to prioritize other initiatives.
Tether CEO Paolo Ardoino commented on X (formerly known as Twitter) that the decision to discontinue EURT was not taken lightly. He mentioned that the company will now focus on expanding Hadron, a tokenization platform for digital and real-world assets, into the region.
Tether's decision to delist EURt has not been taken lightly, but until a more risk-averse regulatory framework in Europe is in place—one that fosters innovation, offers the stability and protection our users deserve and avoids potential banking systemic risks—we have chosen to … https://t.co/WQWAeMwpbD
— Paolo Ardoino 🤖🍐 (@paoloardoino) November 27, 2024
The European Union, the 27-nation bloc that issues the euro, has recently implemented stricter regulatory frameworks for the cryptocurrency market. The Markets in Crypto Assets (MiCA) law, which is set to be enacted in 2023, focuses heavily on regulating the stablecoin industry.
In response to these changes, Tether is supporting Quantoz Payments, a Dutch payments company that has announced the launch of new stablecoins aligned with European regulatory standards. This partnership reflects Tether’s commitment to adapt to the ever-evolving regulatory environment and to continue offering innovative solutions in the cryptocurrency space.
Stablecoins, such as USDT and EURT, are cryptocurrencies backed by stable assets, allowing assets tied to gold, dollars or euros to operate on a blockchain and be used in cryptocurrency transactions. USDT, in particular, is widely used by traders to enter and exit trades without resorting to traditional financial services.
Both Tether and stablecoins have been criticized by some politicians and regulators, who claim that these crypto tokens are favored by criminals. However, Tether continues to expand its operations and adapt to regulatory changes, seeking to offer products that meet the needs of its users and the demands of regulators.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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