- Tether ends Euro Tether support due to MiCA compliance issues in Europe.
- EURt’s low adoption and regulatory hurdles led to its discontinuation.
- Tether prioritizes innovation with Hadron-powered projects.
Recent breaking news is floating around Tether, the issuer of the largest stablecoin. The issuer revealed that it will discontinue support for Euro Tether, EURT, on all blockchains.
Introduced in 2016, EURT was aimed to offer a Euro stablecoin asset for crypto markets with a 1:1 euro backing. Despite its intent, Euro Tether adoption remained low, with a modest $27M market cap. That remained a fraction of USDt’s value.
Regulatory hurdles in Europe pushed Tether Significantly to decide to discontinue EURT. The barriers include MiCA compliance issues.
“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market,” the company stated, adding that community interest remains central to its token deployment decisions.
Tether’s decision aims to enhance transparency, security, and resilience within the cryptocurrency market. However, discontinuing EURT raised concerns about Tether’s ability to comply with strict regulatory frameworks. That challenged Europe’s crypto ecosystem.
To address digital currency volatility, European regulators introduced MiCA rules. This posed significant hurdles to EURt’s viability.
The costs and adjustments required for compliance proved unsustainable. That led to the Euro stablecoin‘s discontinuation. Tether has announced that Euro Tether holders across all blockchains must redeem their tokens by November 25, 2025.
“The decision to discontinue EURT has not been taken lightly,” Paolo Ardoino, CEO of Tether, posted on X. “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.”
Is Tether Falling Short of Europe’s High Standards?
The new MiCA stablecoin regulations impose stringent requirements on issuers. The requirements include adequate reserves, fund segregation, frequent reporting, and secure custody.
Per a significant rule, Euro stablecoin providers, like Tether, should have at least 60% of their reserves in cash at commercial banks. That will help protect investor interest.
However, Tether’s CEO, Paolo Ardoino, has rebelled against this mandate. He argued that maintaining large cash reserves poses greater risks.
These risks include exposure to uninsured banking failures. He advocated for holding 100% of reserves in treasury bills, calling it a safer and more stable alternative.
Ardoino had previously highlighted ongoing discussions with regulators. However, the recent discontinuation of Euro Tether indicated that Tether struggled to gain regulatory approval.
Could Tether’s use of Hadron be the key to unlocking the future of tokenization?
Tether stated that Hadron is built to assist issuers in launching and managing stablecoins efficiently. It simplifies compliance, AML procedures, and issuance processes. They believe Hadron will drive the tokenization of assets like stocks and bonds forward.
Tether, led by Paolo Ardoino, highlighted the significance of Hadron in advancing loyalty point systems. The company emphasized how blockchain technology, through tools like Hadron, is reshaping finance by offering flexible, user-focused solutions.
That’s why Tether has shifted its focus toward initiatives that drive innovation and financial stability in the crypto space. Tether aims to empower global communities with the tools to succeed in the rapidly changing digital economy.
Tether’s investment in Quantoz Payments enabled the launch of the MiCA-compliant EURQ and USDQ stablecoins. That was backed by euros and U.S. dollars, respectively. These E-Money tokens mark a crucial step in the growth of digital assets within European markets.
Tether’s Hadron platform powers these stablecoins. This streamlines stablecoin management while meeting regulatory standards.
“Tether will now focus on new ventures including Quantoz Payments’ MiCAR-compliant stablecoins EURQ and USDQ powered by Tether’s Hadron technology platform. “Hadron will remain our priority in the region,” Ardoino said on X
Tether has strategically positioned itself as a leader in real-world asset tokenization. It aimed to become the foundational technology behind this process. With a stablecoin ecosystem nearing a $200 Billion market cap, Tether continues to solidify its dominance in the space.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
