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Tether has asked EUR₮ holders to redeem tokens within one year, ending on Nov. 25, 2025, as the company decided to discontinue the stablecoin.
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Tether, the issuer of USD₮, the world’s largest stablecoin by market capitalization, is dropping support for its euro-pegged stablecoin, asking users to redeem holdings within one year.
Tether has decided to discontinue support for its EUR₮ (EURT) stablecoin on all blockchains, ceasing minting of the token, the company officially announced on Nov. 27.
The last acquisition request for EUR₮ was processed in 2022, and new EUR₮ issuance requests are no longer accepted, the firm said.
“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market,” the announcement added.
EUR₮ holders should redeem assets by November 2025
Launched by Tether in 2016, EURT is a stablecoin pegged to the value of the euro at a 1:1 ratio, providing a stable asset in a volatile cryptocurrency market.
At the time of writing, the EURT stablecoin has a $27 million market capitalization, which accounts for as low as 0.02% of the market cap by Tether’s primary US dollar-backed stablecoin, USD₮ (USDT).
EUR₮ (EURT) data and historic market capitalization chart. Source: CoinGecko
“Community interest is central in our decision-making process for deploying Tether tokens,” Tether said in the announcement.
Following the EUR₮ support discontinuation, EUR₮ holders on all blockchains should redeem their holdings within one year, ending on Nov. 25, 2025, it added.
Tether cites European stablecoin regulations
Tether’s decision to discontinue EUR₮ aligns with the development of stablecoin-related regulatory frameworks in Europe, including European Markets in Crypto-Assets Regulation (MiCA), which is expected to come into full force by the end of 2024.
“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 said.
Tether’s CEO Paolo Ardoino also previously openly criticized MiCA regulations, arguing that the framework poses “systemic” banking risks for stablecoins.
Tether will focus on investing in MiCA-compliant stablecoins
While dropping its euro stablecoin, Tether will continue to support new projects providing MiCA-compliant stablecoins, including EURQ and USDQ stablecoins by the Dutch fintech company Quantoz Payments.
In mid-November 2024, Tether announced support for Quantoz’s stablecoins alongside Kraken exchange and Fabric Ventures.
Related: Former Binance execs launch MiCA-compliant euro stablecoin
According to the latest announcement, Quantoz’s EURQ and USDQ stablecoins will be enabled by a Tether-designed technology solution called Hadron.
The Hadron tool aims to support issuers in simplifying the process of creating and managing stablecoins and offering robust blockchain interaction, compliance, and Anti-Money Laundering mechanisms.
“Through investments in projects like these, Tether isn’t just creating tools — we’re redefining what’s possible in finance, offering more adaptable and user-centric solutions that drive the evolution of a stable, inclusive financial ecosystem,” Tether said.
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This article first appeared at Cointelegraph.com News
