Tether, the issuer of USD₮, announced on November 27, 2024, that it will cease support for its euro-pegged stablecoin EUR₮ across all blockchains. This decision requires holders to redeem their assets by November 25, 2025, following a lack of new issuance requests since 2022.
The move is attributed to evolving regulatory frameworks in Europe, particularly the Markets in Crypto-Assets Regulation (MiCA), set to be fully effective by the end of 2024. Tether's CEO, Paolo Ardoino, indicated that the decision was made to prioritize initiatives that align with a more stable regulatory environment.
Currently, EUR₮ has a market capitalization of $27 million, representing only 0.02% of Tether's primary stablecoin, USDT, which boasts a 24-hour trading volume of $83.7 billion. Tether plans to support new MiCA-compliant stablecoins, such as EURQ and USDQ, developed in collaboration with Quantoz Payments, utilizing Tether's Hadron technology for streamlined issuance.
This strategic shift reflects Tether's commitment to adapting to market conditions and regulatory requirements while continuing to foster innovation in the stablecoin sector.