Tether (USDT) ends EURT support, citing Europe’s regulatory changes

USDT issuer Tether has halted support for EURT, its euro-tied stablecoin.

Meanwhile, regulatory changes as the European Union embraced the inclusive MiCA regulatory framework triggered Tether's decision.

Tether highlighted that it ceased minting EURT, and holders should redeem the assets by 27 November 2025. The announcement added:

The initial plan was to suspend EURT on various blockchains, including Algorand, EOS, SLP, Kusama, and Omni, starting 1 September 2025.

However, the upcoming MiCA regulatory model has forced Tether to focus on initiatives that adhere to updated standards.

These include working with Quantoz Payments to launch MiCA-compliant USDQ and EURQ tokens.

Tether will leverage its Hadron technology to support the new coins.

The Hadron platform offers tools for compliance, anti-money laundering (AML) management, blockchain interaction, and stablecoin issuance.

According to the company,

MiCA rules will go into effect on 30 December 2024 and apply for stablecoins starting June 2025.

The new policies will introduce strict guidelines for stablecoins in the European Economic Area.

Several cryptocurrency exchanges have adjusted their asset offering to align with the updated regulations.

For instance, Bitstamp delisted EURT by June 2024, while OKX followed the moves by delisting multiple USDT pairs.

Tether shines as stablecoin market cap touches record-highs

Stablecoins joined the latest Trump-drive rallies, driving their market cap to all-time highs.

CCData’s 27 November report reveals that stablecoins’ total market cap increased by 9.94% in November to $190 billion. 

That exceeded the April 2022 ATHs of $188 billion - recorded before the Terra-Luna debacle.

Meanwhile, Tether remained the dominant stablecoin, with its market cap soaring 10% monthly to $132 billion.

USDT boasts 69.9% in market share. Meanwhile, Circle’s USDC approached $39 billion after gaining 12% in November, with a 20.5% market share.

In conclusion, Tether’s move to discontinue the stablecoin EURT reflects its dedication to adhering to regulatory changes in the EU region and prioritizing compliant products.

Also, the decision showcases Tether’s steadfastness in embracing regulatory challenges and improving user security.