USDQ

Fabric

Impact

Tether, the issuer of the world’s most widely used stablecoin, USDT, has announced it will discontinue support for its euro-pegged stablecoin, EURT. According to the <a href="https://tether.io/news/tether-updates-users-on-a-strategic-transition-to-better-support-community-driven-product-support/" rel="noopener noreferrer nofollow">announcement</a>, customers holding EURT across all supported blockchains will redeem their holdings by November 27, 2025.&nbsp;
<h2 id="b-tether-repositions-its-focus-on-new-business-ventures-b">Tether Repositions its Focus on New Business Ventures</h2>
Tether is shifting its focus to new business opportunities. This change comes as the European Union prepares to implement its new Markets in Crypto-Assets (MiCA) regulation. As part of the phase-out plan, Tether has ceased accepting new EURT issuance requests. The company stated that this decision aligns with its strategy to prioritize emerging opportunities within the evolving cryptocurrency and blockchain ecosystem.&nbsp;
Tether emphasized its commitment to providing a seamless offboarding experience for EURT holders. Despite the cessation of new EURT issuance, Tether is committed to ensuring a smooth transition for its users. Meanwhile, the firm now seeks to focus on ventures that align more closely with its long-term goals and growth prospects.
<h2 id="b-mica-compliance-and-market-confidence-b">MiCA Compliance and Market Confidence</h2>
Recall that Dutch fintech firm Quantoz Payments unveiled two new stablecoins, EURQ and USDQ, backed by Tether, Kraken, and Fabric Ventures. These stablecoins, pegged to the euro and U.S. dollar,<a href="https://thecoinrise.com/uphold-to-delist-six-stablecoins-in-compliance-with-eus-mica-regulations/" rel="noopener noreferrer nofollow"> comply with the European Union’s MiCA</a>. The launch of EURQ and USDQ is a milestone for the EU’s regulated digital asset ecosystem, fostering trust through MiCA’s robust framework.
Meanwhile, Tether CEO Paolo Ardoino voiced concerns about potential systemic risks tied to MiCA’s mandate for issuers to hold at least 60% of reserves in European banks. He highlighted that such requirements might create vulnerabilities if banks traditionally loan up to 90% of their reserves, thereby encountering financial instability.
Kjetil Watne, a project director at Norges Bank, noted that <a href="https://thecoinrise.com/mica-scales-another-hurdle-as-parliament-votes-in-support/" rel="noopener noreferrer nofollow">MiCA could be a foundational framework </a>for financial stability but hinted that supplementary regulations might be necessary.
<h2 id="b-mica-s-impact-on-tether-and-usdt-s-dominance-b">MiCA’s Impact on Tether and USDT’s Dominance</h2>
<a href="https://thecoinrise.com/tether-reserves-tops-118-billion-amid-renewed-commitment-to-compliance/" rel="noopener noreferrer nofollow">Tether’s USDT</a>, the world’s largest stablecoin by market capitalization, has long held the <a href="https://thecoinrise.com/stablecoin-market-cap-hits-record-168b-amid-continuous-growth-tether-leads/" rel="noopener noreferrer nofollow">lion’s share of the global stablecoin market</a>. However, Europe’s lack of regulatory clearance had jeopardized the token’s future, especially with MiCA’s imminent rollout.&nbsp; Speculatively, tether Holdings’ <a href="https://thecoinrise.com/tether-at-risk-of-delisting-on-coinbase-over-mica-compliance/" rel="noopener noreferrer nofollow">native token risks being delisted from the Coinbase exchange</a>.
The looming restrictions are not exclusive to Coinbase. Other exchanges like <a href="https://thecoinrise.com/okx-to-sanction-tornado-cash-users-users-in-compliance-move/" rel="noopener noreferrer nofollow">OKX</a>, Bitstamp, and <a href="https://thecoinrise.com/uphold-to-delist-six-stablecoins-in-compliance-with-eus-mica-regulations/" rel="noopener noreferrer nofollow">Uphold </a>have started limiting access to stablecoins, including USDT, while anticipating the regulatory overhaul. Tether, meanwhile, has remained tight-lipped, declining to comment on whether it will seek the necessary permissions to maintain its presence in Europe.
The post <a href="https://thecoinrise.com/tether-to-halt-support-for-eurt-over-mica-compliance/" rel="noopener noreferrer nofollow">Tether to Halt Support for EURT Over MiCA Compliance</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Tether to Halt Support for EURT Over MiCA Compliance

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