Tether Discontinues Support for EURT Stablecoin: Here’s Why

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As a seasoned analyst with over two decades of experience in the financial sector, I have witnessed the ebb and flow of various trends and market dynamics. The recent announcement by Tether to discontinue its EUR₮ stablecoin comes as no surprise, given the shifting regulatory landscape and the apparent lack of demand for the token compared to its competitors.

Tether Inc., known for its well-used USDT stablecoin, declared they will no longer be maintaining the Euro-linked stablecoin, EURT. By November 27, 2025, users must exchange their EURT tokens if they wish to do so.

Our choice in this matter follows our larger strategic goals, taking into account the changing regulatory landscape for stablecoins within the European Union. Until a more balanced framework emerges – one that promotes innovation while ensuring the safety and security our customers require – we’ve decided to focus on other projects.” – Tether explained in their statement.

Tether will shift its attention towards creating new stable coins such as EURQ and USDQ, in partnership with the Dutch tech firm Quantoz. These new digital currencies are tailored to comply with the forthcoming regulations set by MiCA (Markets in Crypto-Assets).

As an analyst, I’ve observed that Tether has chosen to halt the issuance of EUR₮ due to the relatively low demand for this token, which currently stands at a market capitalization of just $27 million. In contrast, stablecoins such as Circle’s EURC and Stasis Euro have garnered more attention in the European market with market caps of $90 million and $130 million respectively, suggesting stronger traction.

Tether’s primary stablecoin, known as USD₮, holds a significant market dominance with more than $132 billion in capitalization, which serves to highlight the greater demand for USD₮ compared to its counterpart, EUR₮.

Given the upcoming enforcement of MiCA regulations, various cryptocurrency platforms have started removing EUR₮, in preparation for these changes.

For instance, Bitstamp, one of the first to list EUR₮, has committed to removing the token by June 2024. Similarly, OKX and Uphold are delisting EUR₮ pairs and have also removed USDT from their platforms for European users. Coinbase, too, is expected to follow suit by December 2024, in line with MiCA’s compliance requirements.

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2024-11-27 21:56