Tether Ends Support for EURT Stablecoin, Prioritizes New EURQ and USDQ Tokens

Tether, the company behind the popular USDT stablecoin, has announced that it will stop supporting its euro-backed stablecoin, EURT.

Cryptocurrency company Tether has announced that it will no longer be issuing its euro-backed stablecoin, EURT.

According to a statement from Tether on Friday, users will be able to continue to redeem their EURT tokens until November 27, 2025, after which the tokens will become irredeemable.

“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market. Until a more risk-averse framework is in place—one that fosters innovation and offers the stability and protection our users deserve—we have chosen to prioritize other initiatives,” Tether said in the announcement.

The company will instead be focusing on its new stablecoins, EURQ and USDQ, which were created in collaboration with Dutch fintech company Quantoz and are designed to meet the upcoming Markets in Crypto Assets (MiCA) rules.

Tether's decision to halt EURT issuance comes amid a relative lack of demand for the token, with a current market capitalization of only $27 million.

In comparison, other euro-pegged stablecoins, such as Circle's EURC, have a market cap of around $90 million, while Stasis Euro's stablecoin has a market cap of $130 million.

Tether's flagship stablecoin, USD₮, has a market capitalization of over $132 billion.

Several cryptocurrency exchanges have already started to delist EURT in anticipation of MiCA's full enforcement, given that the stablecoin does not meet the new regulatory requirements.

For example, Bitstamp, which was among the first exchanges to list EURT, is set to delist the token by June 2024.

Similarly, OKX and Uphold are also set to delist EURT pairs and have also removed USDT from their platforms for European users. Coinbase is also expected to follow suit by December 2024, in line with MiCA's compliance requirements.