Finst

Tether discontinues euro-stablecoin

Stablecoin giant Tether is ending support for the native euro token.

By Finst News
• 2 min read
Tether discontinues euro-stablecoin

Stablecoin giant Tether is ending support for the native euro token. Does the MiCA play a role in this decision?

Tether, the dominant player in the stablecoin market, announced that it is ending support for the euro-stablecoin EURT on all blockchains and will no longer create new tokens. The company announced this in a press release on Wednesday.

In 2016, Tether introduced euro-stablecoin, which had a 1:1 peg to the value of the euro. EURT's current market capitalization is about $27 million, just 0.02 percent of the market capitalization of its own dollar-stablecoin USDT.

According to the company, community input is an important factor in deciding whether to offer Tether tokens on specific blockchains. The statement reads: "After careful consideration, we have decided to discontinue support for EURT."

Holders of Tether euros on all blockchains are now advised to redeem their balances within a year.

The full implementation of MiCA (Markets in Crypto-Assets Regulation) by the end of 2024 seems to have been decisive for this decision. Tether states: "Until there is a less risky legal structure that promotes innovation [...], we have prioritized other initiatives."

Meanwhile, USDT's market capitalization reached a new record level of $133 billion.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.