Tether, the issuer of the popular USDT (USDT) stablecoin, has announced plans to phaseout its Euro-supported stablecoin called “EURT.”
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In a statement, Tether said it is ending the EURT stablecoin because of regulatory challenges within Europe. EURT holders now have until November 25, 2025, to redeem their tokens. Stablecoins are cryptocurrencies whose underlying value is tied to another asset, typically the U.S. dollar or gold.
The decision to end the European stablecoin comes after the European Union adopted its “Markets in Crypto-Assets” (MiCA) regulations last year. EURT had launched in 2016 and was pegged 1:1 to the Euro currency. However, EURT’s market capitalization has declined from more than €500 million (US$527.60 million) to €27 million.
Strict Crypto Rules
The MiCA regulations impose strict rules on stablecoin issuers, including related to money laundering, with full implementation expected in December of this year. Tether’s decision to end the EURT stablecoin comes amid increased scrutiny of stablecoins and allegations of their misuse around the world.
A recent report alleged that the USDT stablecoin is frequently used by criminal organizations for illicit cross-border transactions. Tether has emphasized its commitment to protecting users and supporting a regulatory framework that reduces risks. However, Tether says the European regulations go too far.
Is USDT a Buy?
Most Wall Street firms do not offer ratings or price targets on stablecoins. So instead we look at the three month performance of USDT. As one can see in the chart below, Tether’s main stablecoin has dipped 0.10% in the last 12 weeks. It should be noted that stablecoins are structured so that their price does not fluctuate much. The stable nature of the price is why they are called “stablecoins.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
