Tether, the issuer of the world’s largest stablecoin, USDt (USDT), has announced it will discontinue support for its euro-pegged stablecoin EURt (EURT). The company made the official announcement on Nov. 27, advising users to redeem their EURt holdings within the next year.
Tether will no longer support EURt on any blockchain, and the minting of new EURt tokens has ceased. The last acquisition request for EURt was processed in 2022, and no new issuance requests will be accepted going forward. The decision, according to Tether, is part of a broader strategy considering evolving regulatory frameworks for stablecoins within the European market.
EURt holders have until Nov. 25, 2025, to redeem their assets. The EURt token was originally launched in 2016, pegged to the value of the euro at a 1:1 ratio. Despite its utility as a stable asset in the volatile cryptocurrency market, EURt’s current market capitalization stands at just $27 million, representing only 0.02% of the market cap of Tether’s primary stablecoin, USDt.
Tether cited the regulatory landscape in Europe as a key factor in its decision to discontinue EURt. The European Markets in Crypto-Assets (MiCA) regulation, set to take full effect by the end of 2024, has influenced Tether’s strategic priorities. The company stated, “Until a more risk-averse framework is in place — one that fosters innovation and offers the stability and protection our users deserve — we have chosen to prioritize other initiatives.”
Tether will now focus on supporting MiCA-compliant stablecoin projects. This includes backing EURq and USDq, stablecoins issued by Dutch fintech company Quantoz Payments. Tether, along with Kraken exchange and Fabric Ventures, announced its support for Quantoz’s stablecoins in mid-November 2024. The EURq and USDq stablecoins will leverage Tether’s Hadron technology, a tool aimed at simplifying stablecoin issuance and ensuring compliance with blockchain interaction, Anti-Money Laundering measures, and regulatory standards.
Tether CEO Paolo Ardoino has previously criticized MiCA regulations, calling them potentially problematic for the stability of stablecoins. Nevertheless, Tether has decided to adapt by investing in projects that align with these new regulations, continuing to support the evolution of a compliant and innovative financial ecosystem.