In summary
- Tether announced that it will stop issuing Euro Tether (EURT), citing regulatory challenges in Europe.
- Users have until November 2025 to redeem their EURT tokens before it is discontinued.
- Tether will focus its European expansion on Hadron, its digital asset tokenization platform.
Stablecoin giant Tether has announced that it will stop issuing euro-backed tokens, citing regulatory hurdles in Europe.
The Cryptocurrency company said on Wednesday that it has stopped issuing Euro Tether (EURT) and that those who hold the token have until November 25, 2025 to redeem them.
EURT has very low trading volume: the trading volume in the last day was just over $2 million, according to CoinGecko. The difference is huge compared to the dollar-backed stablecoin Tether, USDT, which is the most traded cryptocurrency on the market, with a 24-hour trading volume of $83.7 billion.
“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market,” Wednesday’s announcement cited.
“Until a more risk-prudent framework is established, one that encourages innovation and offers the stability and protection our users deserve, we have chosen to prioritize other initiatives.”
Tether did not immediately respond to Decrypt’s request for comment. Its CEO Paolo Ardoino wrote on and from the real world.
The European Union, the 27-country trading bloc that issues the euro, last year established stricter regulatory frameworks for cryptocurrencies. Its Markets in Crypto Assets Act (MiCA) established in 2023 largely focused on regulating the stablecoin industry.
A Dutch payments company, Quantoz Payments, announced this month the launch of new stablecoins to meet European regulatory standards. Tether said it backed Quantoz.
Tether is an issuer of stablecoins, that is, cryptocurrencies backed by stable assets. The idea is that assets linked to gold, dollars or euros can run on a Blockchain and be used for cryptocurrency transactions.
Tether’s USDT token, backed by US dollars, is its largest product. Traders use the token to enter and exit trades without using traditional financial services. The token works on several cryptocurrency networks, including Ethereum, Solana, Tron, and Polygon.
Both Tether and stablecoins have attracted criticism from some politicians and regulators, who claim that such tokens are favored by criminals.
Edited by Andrew Hayward
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