Tether discontinues euro-stablecoin

Stablecoin giant Tether is ending support for the native euro token. Does the MiCA play a role in this decision?

Tether, the dominant player in the stablecoin market, announced that it is ending support for the euro-stablecoin EURT on all blockchains and will no longer create new tokens. The company announced this in a press release on Wednesday.

In 2016, Tether introduced euro-stablecoin, which had a 1:1 peg to the value of the euro. EURT's current market capitalization is about $27 million, just 0.02 percent of the market capitalization of its own dollar-stablecoin USDT.

According to the company, community input is an important factor in deciding whether to offer Tether tokens on specific blockchains. The statement reads:
"After careful consideration, we have decided to discontinue support for EURT."

Holders of Tether euros on all blockchains are now advised to redeem their balances within a year.

The full implementation of MiCA (Markets in Crypto-Assets Regulation) by the end of 2024 seems to have been decisive for this decision. Tether states:
"Until there is a less risky legal structure that promotes innovation [...], we have prioritized other initiatives."

Meanwhile, USDT's market capitalization reached a new record level of $133 billion.