Tether ends EURT stablecoin support citing EU’s MiCA regulations

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Tether is set to discontinue support for EURT, its Euro stablecoin, in the face of new requirements that have come with the EU’s Markets in Crypto Assets Regulation (MiCAR), the stablecoin provisions of which came into force at the end of June.

In a statement, the issuer of the world’s top stablecoin—by market cap—urged customers holding EURT on all supported blockchains, including Ethereum, Solana, and Tron, to redeem their assets by November 27, 2025. New EURT issuance requests are no longer accepted.

According to the issuer, the reason for the move is its objection to specific provisions of the EU’s landmark digital asset regulation, MiCAR. So, rather than complying, it’s decided to pack up its toys and go home.

“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market,” Tether said. “Until a more risk-averse framework is in place—one that fosters innovation and offers the stability and protection our users deserve—we have chosen to prioritize other initiatives.”

MiCAR was designed to come into effect in stages, with the stablecoin provisions taking effect as of July 1, and the remaining requirements related to crypto asset service providers (CASPs) to come into force at the end of December.

When it comes to stablecoins, issuers are now required—among other things—to be authorized by the central bank and to publish a white paper containing information on the relevant token for investors; there are new conduct and governance requirements around marketing, disclosure of information and dealing with conflicts of interest; and prudential requirements to ensure sufficient liquidity and the ability to meet redemption requests, including that 30% of stablecoin reserves be held in bank accounts, with 60% for larger stablecoins.

It’s this latter requirement to which Tether particularly objects, with CEO Paolo Ardoino having previously criticized the framework’s “very restrictive measures,” suggesting it poses systemic banking risks. Ardoino also voiced concerns that it was “very difficult” to secure relationships with one bank, let alone multiple banks.

Launched in 2016, EURT is pegged 1:1 to the euro and was designed to provide a stable euro-backed asset for digital asset markets. Currently, EURT has a market capitalization of €26 million ($27.4 million) compared to Tether’s USD stablecoin, which is at $132 billion. The issuer has been operating offshore, so it’s also possible Tether calculated that the work and cost involved in becoming MiCAR compliant are not worth the benefits.

Thus, rather than get itself in line, the company’s investment arm has invested in Quantoz, a company that plans to issue MiCAR-compliant U.S. dollar and euro stablecoins.

“At this time, we will be focusing our support on new ventures such as the launch of Quantoz Payments’ revolutionary MiCAR-compliant stablecoins, EURQ, and USDQ, which will be powered by Tether’s advanced technology solution, Hadron by Tether,” the issuer said.

Other stablecoin issuers have decided to align themselves with MiCAR, not least Circle, which announced on July 1 that it had become the first global stablecoin issuer to achieve compliance with MiCAR for its EURC. Along with Société Générale’s EURCV, the two currently dominate the euro-stablecoin market with a combined 67% share. 

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