Tether, the issuer of the well-known USDT stablecoin, has declared that it will cease providing support for its euro-pegged stablecoin, EURT. Holders of EUR₮ tokens have until November 27, 2025, to redeem them.
Tether’s announcement read, “This determination corresponds with our wider strategic path, taking into account the constantly changing regulatory environment for stablecoins in the European market. Until a more risk-minimizing framework is established – one that promotes innovation and delivers the stability and safeguard our customers expect – we have opted to concentrate on other projects.”
Rather than EUR₮, Tether will center on novel stablecoins such as EURQ and USDQ. These have been developed in partnership with the Dutch fintech firm Quantoz and are crafted to adhere to the forthcoming MiCA regulations.
The choice to halt EUR₮ issuance by Tether comes as a result of the relatively low demand for the token. Its current market capitalization stands at a mere $27 million. In contrast, stablecoins like Circle’s EURC, with a $90 million market cap, and Stasis Euro, worth $130 million, have achieved more significant acceptance in the European market. Tether’s leading stablecoin, USD₮, commands a dominant market capitalization exceeding $132 billion, highlighting the vast difference in demand for EUR₮.
Due to the regulatory modifications, numerous cryptocurrency exchanges have already initiated the delisting of EUR₮ in anticipation of the full implementation of MiCA. For example, Bitstamp, among the first to list EUR₮, has pledged to remove the token by June 2024. OKX and Uphold are also delisting EUR₮ trading pairs and have additionally removed USDT from their platforms for European users. Coinbase is anticipated to do the same by December 2024, in accordance with MiCA’s compliance stipulations.
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