Tether Invests in European Regulated Stablecoin Issuer StablR, the European Stablecoin Market Heats Up

Tether's investment in StablR demonstrates its commitment to the European market and its endorsement of fully regulated stablecoins.

Stablecoin issuer StablR announced on Monday that it has secured an investment from Tether. This move marks Tether’s first direct investment in a European stablecoin and signifies its entry into the region’s stablecoin market.

According to the press release shared with Currency.com, Tether’s investment will be used to further StablR’s mission of providing fully regulated, EUR- and USD-backed stablecoins. The investment will also support the expansion of StablR’s stablecoins across multiple networks.

This development comes as the European stablecoin market has seen several launches in recent times. Stablecoin launches, such as StablR’s EURR and USDR, have aimed to enhance liquidity management, reduce transaction costs and offer significant savings for users.

The European stablecoin market, which has a market capitalisation of nearly $400 million for EUR-pegged stablecoins alone, has gained considerable traction in recent months. This growth is largely driven by the upcoming implementation of the EU’s MiCA framework, set to take effect on December 30. This comprehensive regulatory change will require exchanges and stablecoin issuers to comply with strict standards throughout the jurisdiction.

StablR will be leveraging the capabilities of Hadron by Tether, a next-generation tokenization platform launched by Tether last month. StablR’s stablecoins will be fully integrated with Hadron by Tether, enabling the seamless tokenization of fiat currencies, commodities and other assets on multiple blockchains.

Hadron by Tether aims to simplify the tokenization process for a wide range of assets, including stocks, bonds, commodities, stablecoins and more. Hadron by Tether is designed to offer a user-friendly software as a service interface that supports the entire token lifecycle for individuals, businesses and nation-states. Additionally, it focuses on providing a robust compliance toolkit that includes Know-Your-Customer (KYC), Anti-Money-Laundering (AML), Know-Your-Transaction, risk management and secondary market ecosystem monitoring.

StablR is known for its commitment to compliance and reliability. The company’s EMI licence from the Malta Financial Services Authority and its MiCAR-compliant stablecoins, EURR and USDR, cater to the needs of financial institutions and retail users. These fully backed stablecoins, pegged to the euro and the US dollar, respectively, were designed to provide a stable and convenient way to store and transfer value in digital form. They are also ERC-20 and Solana-compatible, allowing transfers to Ethereum and Solana wallets.