tl;dr
Tether, a major stablecoin issuer, is discontinuing its Euro-backed asset, EURT, due to the EU's MiCA regulations. The company has ceased minting EURT and current holders have one year to redeem tokens. Tether cited evolving regulatory frameworks as the reason for this decision. Competitors see MiCA...
Tether, a major stablecoin issuer, is discontinuing its Euro-backed asset, EURT, due to the EU's MiCA regulations. The company has ceased minting EURT and current holders have one year to redeem tokens. Tether cited evolving regulatory frameworks as the reason for this decision. Competitors see MiCA as an opportunity to challenge Tether's dominance in the European stablecoin market, and Tether has acknowledged this competition. However, Tether remains invested in MiCA-compliant stablecoins and continues to pursue initiatives in the European market.
This morning, the prominent stablecoin Tether announced via social media that it would discontinue EURT, its Euro-backed asset. The company explained its decision via a blog post, adding that the firm had stopped minting the asset, and current holders would have one year to redeem EURT tokens. "This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market. 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," the post claimed.
The announcement was quite clear that Tether was a major investor in a MiCA-compliant stablecoin from Quantoz. Tether also promoted Hadron, its new solution designed to support issuers in creating and managing stablecoins. Tether is engaging in a calculated retreat from the European market, not an outright surrender. The company is maintaining several revenue streams in MiCA-compliant stablecoins and may reenter the space at a later date. For now, the company has considerable resources to address this problem.
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