Tether Discontinues Its Euro Stablecoin EURT, Citing EU's MiCAR Regulation

Tether is set to discontinue support for EURT, its Euro stablecoin, in the face of new requirements that have come with the EU’s Markets in Crypto Assets Regulation (MiCAR)

Stablecoin issuer Tether has announced that it will no longer support EURT, its Euro-pegged stablecoin, due to specific provisions in the EU’s Markets in Crypto Assets Regulation (MiCAR).

Stablecoin issuer Tether has announced that it will no longer support EURT, its Euro-pegged stablecoin, due to specific provisions in the EU’s Markets in Crypto Assets Regulation (MiCAR).

Customers holding EURT on all supported blockchains, including Ethereum, Solana, and Tron, are urged to redeem their assets by November 27, 2025. New EURT issuance requests will no longer be accepted.

Customers holding EURT on all supported blockchains, including Ethereum, Solana, and Tron, are urged to redeem their assets by November 27, 2025. New EURT issuance requests will no longer be accepted.

“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market,” Tether said in a statement on August 22.

“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market,” Tether said in a statement on August 22.

The relevant provisions of MiCAR came into force at the end of June. Among other things, stablecoin issuers are now required to be authorized by the central bank and to publish a white paper containing information on the relevant token for investors.

The relevant provisions of MiCAR came into force at the end of June. Among other things, stablecoin issuers are now required to be authorized by the central bank and to publish a white paper containing information on the relevant token for investors.

There are also new conduct and governance requirements around marketing, disclosure of information, and dealing with conflicts of interest, as well as prudential requirements to ensure sufficient liquidity and the ability to meet redemption requests.

There are also new conduct and governance requirements around marketing, disclosure of information, and dealing with conflicts of interest, as well as prudential requirements to ensure sufficient liquidity and the ability to meet redemption requests.

Specifically, the issuer took umbrage with the requirement that 30% of stablecoin reserves be held in bank accounts, with 60% for larger stablecoins.

Specifically, the issuer took umbrage with the requirement that 30% of stablecoin reserves be held in bank accounts, with 60% for larger stablecoins.

Tether CEO Paolo Ardoino had earlier criticized the framework’s “very restrictive measures,” suggesting it poses systemic banking risks. Ardoino also voiced concerns that it was “very difficult” to secure relationships with one bank, let alone multiple banks.

Tether CEO Paolo Ardoino had earlier criticized the framework’s “very restrictive measures,” suggesting it poses systemic banking risks. Ardoino also voiced concerns that it was “very difficult” to secure relationships with one bank, let alone multiple banks.

Launched in 2016, EURT is pegged 1:1 to the euro and was designed to provide a stable euro-backed asset for digital asset markets.

Launched in 2016, EURT is pegged 1:1 to the euro and was designed to provide a stable euro-backed asset for digital asset markets.

Currently, EURT has a market capitalization of €26 million ($27.4 million) compared to Tether’s USD stablecoin, which is at $132 billion. The issuer has been operating offshore, so it’s also possible Tether calculated that the work and cost involved in becoming MiCAR compliant are not worth the benefits.

Currently, EURT has a market capitalization of €26 million ($27.4 million) compared to Tether’s USD stablecoin, which is at $132 billion. The issuer has been operating offshore, so it’s also possible Tether calculated that the work and cost involved in becoming MiCAR compliant are not worth the benefits.

Hence, rather than get itself in line, the company’s investment arm has invested in Quantoz, a company that plans to issue MiCAR-compliant U.S. dollar and euro stablecoins.

Hence, rather than get itself in line, the company’s investment arm has invested in Quantoz, a company that plans to issue MiCAR-compliant U.S. dollar and euro stablecoins.

“At this time, we will be focusing our support on new ventures such as the launch of Quantoz Payments’ revolutionary MiCAR-compliant stablecoins, EURQ, and USDQ, which will be powered by Tether’s advanced technology solution, Hadron by Tether,” the issuer said.

“At this time, we will be focusing our support on new ventures such as the launch of Quantoz Payments’ revolutionary MiCAR-compliant stablecoins, EURQ, and USDQ, which will be powered by Tether’s advanced technology solution, Hadron by Tether,” the issuer said.

Other stablecoin issuers have decided to align themselves with MiCAR, not least Circle, which announced on July 1 that it had become the first global stablecoin issuer to achieve compliance with MiCAR for its EURC.

Other stablecoin issuers have decided to align themselves with MiCAR, not least Circle, which announced on July 1 that it had become the first global stablecoin issuer to achieve compliance with MiCAR for its EURC.

Along with Société Générale’s EURCV, the two currently dominate the euro-stablecoin market with a combined 67% share.

Along with Société Générale’s EURCV, the two currently dominate the euro-stablecoin market with a combined 67% share.