Tether Ends Support for EURt to Focus on Hadron Amid European Regulatory Challenges

By: Eliza Bennet

Stablecoin issuer Tether has announced a strategic shift in its operations by ending support for its Euro-pegged stablecoin, EURt. This move comes amid growing regulatory challenges in Europe, where evolving regulations have posed significant hurdles for stablecoin issuers. Tether ceased the minting of new EURt tokens and the last issuance request was processed in 2022. Current holders of the token will be able to redeem them until November 27, 2025. Tether's decision marks the conclusion of EURt’s challenging journey in a market where competitors like Circle's MiCA-compliant Euro-Coin (EURC) have made more significant inroads.

According to recent market data, EURt has struggled to gain substantial traction in Europe, maintaining a market capitalization of just $38 million. In contrast, Circle's EURC has a market valuation of $90.5 million, while Stasis’ Euro stands at $130 million. Meanwhile, Tether’s flagship stablecoin, USDt, boasts a robust $132 billion market cap, overshadowing its closest competitor, USDC, by a significant margin.

Tether CEO Paolo Ardoino highlighted the decision to withdraw EURt support as a response to the European Union's Markets in Crypto-Assets Regulation (MiCA). MiCA presents a stringent regulatory framework that obligates stablecoin issuers to acquire e-money authorization in at least one EU member country. Ardoino has criticized these requirements, arguing that they could pose systemic risks to both banks and digital assets due to their stringent cash reserve mandates. He emphasized the importance of a regulatory framework that balances innovation, user protection, and risk management.

While Tether steps back from EURt, the company is prioritizing its new initiative, Hadron, which aims to enhance asset tokenization for various stakeholders, including institutions, governments, fund managers, and private companies. Already, Dutch fintech firm Quantoz has used Hadron to launch EURQ and USDQ stablecoins, which fully comply with MiCA, showcasing Hadron’s adaptability to demanding regulatory landscapes. This strategic pivot underscores Tether’s commitment to advancing its operations while navigating complex regulatory environments.