Tether Exits the EURt Stablecoin Market
Tether has announced it will cease support for its euro-pegged stablecoin, EURt, across all blockchains. The decision comes amid regulatory shifts in Europe, specifically the Markets in Crypto-Assets (MiCA) framework.
Redemption Deadline for EURt Holders
Tether has set November 25, 2025, as the final deadline for EURt redemption. The company stopped minting new EURt tokens in 2022, signaling an early move toward winding down its euro-stablecoin operations.
Impact of MiCA Regulation on Stablecoins
Tether cited the evolving MiCA regulatory framework as a major reason for discontinuing EURt. MiCA, which takes full effect by the end of 2024, introduces stringent requirements for stablecoin issuers in Europe.
The Limited Adoption of EURt
Launched in 2016, EURt was designed as a euro-backed stablecoin. However, with a market capitalization of just $27 million—0.02% of USDt’s market cap—EURt struggled to gain significant traction in the crypto ecosystem.
Tether’s Strategic Pivot to Compliance
Despite exiting EURt, Tether remains committed to developing MiCA-compliant projects. This includes EURq and USDq stablecoins, developed in collaboration with Dutch fintech firm Quantoz Payments, leveraging advanced compliance technology.
Growing Competition in Euro-Stablecoins
Circle’s EURC and Société Générale’s EURCV dominate the euro-stablecoin market, holding a 67% share. Tether’s exit clears the field for competitors while its focus shifts toward regulatory-compliant innovation.
CEO Paolo Ardoino’s Take on MiCA
Tether CEO Paolo Ardoino has voiced concerns over MiCA, describing it as a potential risk to stablecoins and systemic banking. Despite these critiques, Tether is aligning its strategy with the framework’s requirements.
Partnerships for New Stablecoin Projects
Tether’s focus on MiCA compliance extends to partnerships with innovative firms. The EURq and USDq stablecoins, supported by Tether, Kraken, and Fabric Ventures, aim to navigate MiCA regulations seamlessly.
Expansion Beyond Europe: Dirham Stablecoin
Tether is also venturing into other regional markets. It recently partnered with UAE-based firms Phoenix Group and Green Acorn Investments to launch a dirham-pegged stablecoin, showcasing its global ambitions.
The Future of Tether in a Regulated World
With EURt discontinued, Tether is redirecting its efforts toward compliant, technologically advanced stablecoin projects. This strategic shift highlights Tether’s adaptability and focus on meeting emerging regulatory challenges.
