Tether to shutter EURt to focus on Hadron amid regulatory challenges in Europe News ▸ EU ▸ Tether ▸ Stablecoins
Tether to shutter EURt to focus on Hadron amid regulatory challenges in Europe
Tether CEO Ardoino cites regulatory hurdles with MiCA as rationale behind EURT's decision.
2 min read
Updated: Nov. 27, 2024 at 4:10 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Stablecoin issuer Tether announced plans to end support for its Euro-pegged stablecoin, EURt, in a Nov. 27 statement.
The company stated it had ceased minting new EURt tokens, with the last issuance request processed in 2022. It also continued that the asset’s current holders can redeem the tokens until Nov. 27, 2025.
The decision marks the end of EURt’s challenging journey in a market where competitors like Circle’s MiCA-compliant EURC dominate.
According to CryptoSlate’s data, EURt struggled to gain traction in Europe, holding a market capitalization of just $38 million. This figure trails Circle’s EURC, valued at $90.5 million, and Stasis’ Euro, which boasts a $130 million valuation.
In stark contrast, Tether’s flagship stablecoin, USDt, commands a robust $132 billion market cap— more than three times higher than its closest competitor, USDC.
Why Tether is ending EURt support
Tether CEO Paolo Ardoino attributed the move to Europe’s evolving regulatory landscape for stablecoins.
The EU’s Markets in Crypto-Assets Regulation (MiCA) introduces a stringent regulatory environment that requires stablecoin issuers to obtain e-money authorization in at least one EU member country. This law has drawn significant backlash from Ardoino, who claims the strict cash reserve requirements could present systemic risks to banks and digital assets.
Ardoino emphasized the need for a framework that balances risk management with innovation and user protection. He stated:
“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 prioritize other initiatives.”
While Tether might not comply with MiCA, Ardoino pointed out that the firm’s new initiative, Hadron, will be a top priority in the European region. According to him, Hadron has the potential to revolutionize the accessibility of asset tokenization for institutions, governments, fund managers, and private companies.
Dutch fintech firm Quantoz has already leveraged Hadron to issue EURQ and USDQ stablecoins. These tokens fully comply with the EU’s Markets in Crypto-Assets Regulation (MiCA), demonstrating the platform’s adaptability to stringent regulatory requirements.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Tether EURt
$1.03721
EURt is a stablecoin (stable-value cryptocurrency) that mirrors the price of theEuro, issued by a Hong Kong-based company Tether.
Euro Coin
$1.04040
Euro Coin (EUROC) is issued by Circle under the same full-reserve model as USD Coin (USDC), a trusted dollar digital currency with more than $54 billion in circulation.1 Designed for stability, Euro Coin is 100% backed by euros held in euro-denominated banking accounts so that it’s always redeemable 1:1 for euros.
STASIS EURO
$1.04053
EURS token is a virtual financial asset that is designed to digitally mirror the EUR on a 1:1 basis.
USD Coin
$1.00006
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.
