Tether (USDT) Stops Issuing EURT Stablecoin, EURQ and USDQ Are the Alternatives

The news is official: yesterday Tether announced that it has stopped issuing EURT. EURT is the stablecoin pegged to the euro issued by Tether

The stablecoin EURT, pegged to the euro and issued by Tether, will no longer be issued.

The news was announced yesterday by the company itself, which specifies that the new requests for the issuance of EURT will no longer be processed.

However, the stablecoin will continue to circulate on the crypto markets for another year, during which time its holders will be able to redeem it.

Afterwards, EURT will also be delisted from the exchanges.

The stablecoin EURT was created by Tether in 2020, and is fully euro-collateralized, unlike USDT, which is also issued by Tether, but pegged to the US dollar.

In fact, EURT is the stablecoin issued by Tether that is pegged to the euro, and it has nothing to do with USDT.

Despite being issued by Tether, EURT is not among the most successful stablecoins, neither among those pegged to the euro, nor in comparison with USDT.

In fact, among the stablecoins pegged to the euro, it is only in fourth place in terms of market capitalization, which is equivalent to less than 27 million dollars.

In first place, instead, is Stasis Euro (EURS) with 130 million.

Despite this, EURT is present on as many as 37 exchanges, and has a trading volume not much lower than 3 million dollars daily, while Circle’s EURC exceeds 55 million.

Therefore, its potential disappearance from the crypto markets will not leave a great void.

The reasons for the abandonment of EURT were explained by the CEO of Tether, Paolo Ardoino.

According to him, the decision to delist EURT was not taken lightly, but the current European regulatory framework is too risk-averse, and does not promote innovation or offer sufficient stability and protection for stablecoin users.

In particular, the problem is that European regulations do not allow avoiding potential systemic banking risks regarding stablecoins, which has led Tether to choose to prioritize other initiatives.

In fact, by now, from this point of view, Tether is mainly focusing on Hadron in the European context, which is its platform for the issuance of tokens that encompasses all the technology and know-how the company has developed over the last decade.

Precisely thanks to Hadron by Tether, two new stablecoins, EURQ and USDQ, have been recently launched, which are already fully compliant with the European crypto regulation (MiCA).

They are stablecoins issued by Quantoz Payments, which is a blockchain company based in the Netherlands but is directly supported by Tether.

EURQ for now capitalizes only 1.5 million dollars and is present on only two exchanges, while USDQ capitalizes 6 million and is present on the same two exchanges as EURQ.

So for now, these two stablecoins have not yet been able to take the place of USDT or EURT in the European Union, but they have just landed on the crypto markets and there is still time until December 31 to comply with the European regulation on stablecoins.

EURQ and USDQ are explicitly mentioned in the official press release in which Tether announces the cessation of EURT issuances, effectively indicating them as the alternatives they are focusing on at this moment.