Tether Ends Support for Euro-Pegged Stablecoin EUR₮: Redemption Deadline Set
Tether to Discontinue Euro Stablecoin EUR₮
Them issuer of the largest stablecoin by market capitalization, USD₮, has announced that it is discontinuing its euro-pegged stablecoin, EUR₮. The decision marks a strategic realignment as the company adapts to the shifting European regulatory landscape.
Announced back in 2016, EUR₮ aimed at introducing euro-backed stability in highly volatile cryptocurrency markets. Yet its usage has faded away: this token comprises 0.02% of the market cap of Tether’s core stablecoin, USD₮, at $27 million.
Redemption Available Until November 2025
Tether is encouraging holders of the EUR₮ to redeem their tokens before November 25, 2025. It has stopped accepting new issuance requests for EUR₮, and the last token acquisition was back in 2022. This one-year window should give ample time for users to migrate off the asset.
“This decision is in line with our broader strategic direction,” said Tether. The company highlighted its commitment to meeting new regulatory demands in Europe while focusing on the protection of users and ensuring market innovation.
Discontinuation Due to Regulatory Challenges
The main driver for this decision is the European Markets in Crypto-Assets Regulation, or MiCA, which will be in full force by the end of 2024. MiCA imposes strict requirements on stablecoin issuers, which has made them question the viability of EUR₮ under the new regime.
Tether’s CEO Paolo Ardoino has openly criticized MiCA, describing it as a potential source of systemic risks for stablecoins. The firm’s decision reflects a cautious approach, prioritizing compliance and risk management over maintaining EUR₮ operations.
Investment in MiCA-Compliant Alternatives
Although Tether is retiring EUR₮, the company does not abandon support for MiCA-compliant projects. In November 2024, Them announced support for Quantoz Payments’ EURQ and USDQ stablecoins, in a round joined by industry players such as Kraken exchange and Fabric Ventures.
These new stablecoins utilize Tether’s Hadron technology, a robust solution for streamlining stablecoin issuance, blockchain interaction, compliance, and anti-money laundering mechanisms.
A Future-Focused Strategy
Tether’s strategic shift in this direction underlines its adaptability in an ever-evolving regulatory environment; it is a company that invests in compliant innovations to offer secure and innovative solutions in tune with financial standards around the world.
While riding these changes, Tether still focuses on creating an inclusive financial ecosystem, which redefines stablecoin innovation toward user-centric growth in the years to come.
Read More
Thailand Cracks Down on Foreign Crypto P2P Platforms in New Anti-Crime Push
TAIKO Token Launches on Revolut, Reaching 45M+ Global Users
Tether Ends Support for Euro-Pegged Stablecoin EUR₮: Redemption Deadline Set
Tether to Discontinue Euro Stablecoin EUR₮
Them issuer of the largest stablecoin by market capitalization, USD₮, has announced that it is discontinuing its euro-pegged stablecoin, EUR₮. The decision marks a strategic realignment as the company adapts to the shifting European regulatory landscape.
Announced back in 2016, EUR₮ aimed at introducing euro-backed stability in highly volatile cryptocurrency markets. Yet its usage has faded away: this token comprises 0.02% of the market cap of Tether’s core stablecoin, USD₮, at $27 million.
Redemption Available Until November 2025
Tether is encouraging holders of the EUR₮ to redeem their tokens before November 25, 2025. It has stopped accepting new issuance requests for EUR₮, and the last token acquisition was back in 2022. This one-year window should give ample time for users to migrate off the asset.
“This decision is in line with our broader strategic direction,” said Tether. The company highlighted its commitment to meeting new regulatory demands in Europe while focusing on the protection of users and ensuring market innovation.
Discontinuation Due to Regulatory Challenges
The main driver for this decision is the European Markets in Crypto-Assets Regulation, or MiCA, which will be in full force by the end of 2024. MiCA imposes strict requirements on stablecoin issuers, which has made them question the viability of EUR₮ under the new regime.
Tether’s CEO Paolo Ardoino has openly criticized MiCA, describing it as a potential source of systemic risks for stablecoins. The firm’s decision reflects a cautious approach, prioritizing compliance and risk management over maintaining EUR₮ operations.
Investment in MiCA-Compliant Alternatives
Although Tether is retiring EUR₮, the company does not abandon support for MiCA-compliant projects. In November 2024, Them announced support for Quantoz Payments’ EURQ and USDQ stablecoins, in a round joined by industry players such as Kraken exchange and Fabric Ventures.
These new stablecoins utilize Tether’s Hadron technology, a robust solution for streamlining stablecoin issuance, blockchain interaction, compliance, and anti-money laundering mechanisms.
A Future-Focused Strategy
Tether’s strategic shift in this direction underlines its adaptability in an ever-evolving regulatory environment; it is a company that invests in compliant innovations to offer secure and innovative solutions in tune with financial standards around the world.
While riding these changes, Tether still focuses on creating an inclusive financial ecosystem, which redefines stablecoin innovation toward user-centric growth in the years to come.
Read More
Thailand Cracks Down on Foreign Crypto P2P Platforms in New Anti-Crime Push