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Langgampos.com - Tether, the issuer of various stablecoins, has announced the cessation of EURT, its Euro-pegged stablecoin, citing changes in the European regulatory landscape. According to Tether's CEO, Paolo Ardoino, the decision to discontinue EURT was carefully considered and announced in a post on his personal account on X (formerly Twitter).
As reported by News.bitcoin.com on December 2, 2024, Tether stated that holders of EURT will have until November 27, 2025, to redeem their tokens. After that date, the company will no longer support EURT trading across any blockchain.
In his statement, Ardoino emphasized the challenges posed by the current regulatory framework in Europe. “Tether’s decision to delist EURT was not made lightly. Until a less risky and more innovation-friendly regulatory framework is implemented in Europe—one that offers stability, adequate user protection, and mitigates systemic banking risks—we have decided to focus on other initiatives,” he explained.
Prior to the announcement, EURT's market capitalization stood at $38.3 million, a small fraction compared to Tether’s overall stablecoin market cap, which exceeds $133 billion, according to Defillama. EURT adoption has significantly lagged behind Tether's flagship stablecoin, USDT.
Pivoting to New Stablecoin Innovations
Looking ahead, Tether aims to strengthen its presence in the European Union through the introduction of new stablecoins. These include EURQ and USDQ, developed in collaboration with Quantoz Payments. Both stablecoins are designed to comply with Europe’s Markets in Crypto-Assets Regulation (MiCAR) and will utilize Tether's Hadron technology.
Hadron by Tether simplifies the issuance process for stablecoins and other tokenized assets, offering robust blockchain interfaces, compliance tools, and anti-money laundering (AML) capabilities. This software enables issuers to create and manage stablecoins efficiently while facilitating the tokenization of assets such as equities, bonds, and loyalty points.
Stablecoins Surge Amid Crypto Market Rally
The broader stablecoin market has reached new milestones as digital asset demand surges, driven partly by expectations of a crypto-friendly administration under U.S. President-elect Donald Trump. Since the U.S. presidential election, the overall market capitalization of digital assets has increased by nearly $1 trillion.
Notably, Bitcoin (BTC) and Solana (SOL) have hit all-time highs, and stablecoins have joined the rally. According to CCData, the combined market cap of stablecoins reached a record $190 billion this month, surpassing the previous peak of $188 billion in April 2022, shortly before the collapse of Terra-Luna.
Tether’s USDT remains dominant in the stablecoin sector, with its market cap rising 10% over the past month to a new high of $132 billion. Circle’s USDC, the second-largest stablecoin, also grew by 12%, reaching nearly $39 billion, its highest level since the regional banking crisis in March 2023.
Tether now holds a 69.9% market share in the stablecoin sector, with USDC capturing 20.5%. The company is also expanding its horizons, recently funding its first crude oil transaction in the Middle East as part of its strategy to integrate USDT into new industries, including commodities.
This bold pivot signals Tether's ambition to remain at the forefront of the rapidly evolving digital asset ecosystem, even as it navigates regulatory complexities worldwide.
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