Tether is discontinuing its support for the Euro-pegged stablecoin EURT, and will no longer accept new issuance requests.

The Tether (USDT) issuer notified its community and the broader industry that the company has ended EURT support via a blog post on Nov. 27.

According to the announcement, the decision to halt the minting of the Euro-pegged stablecoin comes amid the industry’s adjustment to the regulatory environment around stablecoins. In particular, Tether has taken this step in response to the European Union’s stablecoin regulation as outlined in the Markets in Crypto-Assets regulation.

MiCA rolled out for stablecoins in June, with full implementation of the comprehensive regulatory regime set for December 30, 2024.

“After careful consideration, we have made the decision to discontinue support for EUR₮. As such, Tether has ceased minting EUR₮, with the last acquisition request processed in 2022, and new EUR₮ issuance requests are no longer accepted,” Tether wrote.

The USDT issuer is choosing to end EURT support “until a more risk-averse framework is in place.” Customers with EURT balances on blockchains have until November 27, 2025, to redeem their holdings.

Tether previously disclosed plans to halt EURT across several chains, including EOS, Omni, Kusama and Algorand. However, this has changed with stringent rules around asset-referenced tokens. Some exchanges announced the delisting of the fiat-backed token this year. They include OKX, Bitstamp and Coinbase.

As the crypto platform takes this step, it notes that its focus will now be on other initiatives. These include Tether’s support for recently launched MiCA-compliant stablecoins USDQ and EURQ.

Tether recently invested in USDQ and EURQ issuer Quantoz Payments, which crypto.news highlighted last week. Tether’s blockchain technology solution Hadron by Tether will power this integration.

The EURT stablecoin was launched in 2016.

The third quarter of 2024 saw a surge in stablecoin use and adoption, according to Coinbase’s 4th Quarter Guide to Crypto Markets report with Glassnode. 

Stablecoins hit an all-time high market capitalization of nearly $170 billion in Q3 2024, according to the report. This growth occurred alongside the implementation of the European Union’s new Markets in Crypto-Assets regulation, which introduced clearer rules for stablecoin operations.

Stablecoins have become a key tool for users seeking faster, cheaper, and more secure transactions. Their utility in payment systems, including remittances and cross-border transfers, has continued to expand. 

Recently, Anthony Pompliano argued that tech innovations outside of crypto could lead to a new era in which stablecoins become the primary transaction medium in a machine-driven economy. This increased adoption reflects the growing role of stablecoins in crypto trading and real-world financial systems.

According to the report, stablecoin volumes have reached nearly $20 trillion year-to-date as of the third quarter, indicating their growing role in the global economy.

Stablecoin and Bitcoin dominance

Stablecoin dominance also increased in Q3 alongside Bitcoin (BTC), with crypto investors gravitating toward what they see as the highest-quality digital assets.

The current BTC cycle closely tracks the 2015-2018 and 2018-2022 cycles, which ended with nearly 2,000% and 600% returns, according to the report. 

What is MiCA?

The Markets in Crypto-Assets Regulation is a comprehensive framework enacted by the European Union in June 2023 to regulate the crypto industry across its 27 member countries. It initiates a 12-18 month transition period for implementing rules on anti-money laundering, combating the financing of terrorism and digital asset custody, among others.

MiCA’s impact on stablecoins still remains to be seen, but Tether (USDT) CEO Paolo Ardoino expressed concern that MiCA’s 60% cash reserve requirement for stablecoins could create systemic risks for European banks. He argued that such regulations might exacerbate liquidity issues during large-scale redemptions, potentially leading to bank failures.

Crypto exchange Coinbase is set to delist unauthorized stablecoins from its European branch by year-end, in response to incoming MiCA regulations.

U.S.-based cryptocurrency exchange Coinbase will remove all non-compliant stablecoins from its European exchange by the end of this year, as the company moves to comply with the European Union’s new crypto regulations, Bloomberg has learned.

The Markets in Crypto-Assets framework, which came into effect in June for stablecoin issuers, requires companies to hold e-money authorization in at least one Europe’s member state. Further regulatory guidelines for exchanges like Coinbase will be enforced starting Dec. 31.

A spokesperson for Coinbase told Bloomberg that the exchange plans to restrict services related to non-compliant stablecoins, including Tether’s (USDT) by Dec. 30. The exchange will provide users with an update in November, outlining options to convert their holdings to alternatives such as Circle’s USD Coin (USDC).

In early July, French blockchain analytics firm Kaiko said in a research note that Circle has benefited from the MiCA regulations, with its stablecoins experiencing significant increases in daily trading volumes following the introduction of the new requirements.

Still, industry leaders have expressed concerns about the regulations. For instance, Tether CEO Paolo Ardoino cautioned that stringent cash reserve requirements could pose systemic risks to banks.

The delisting trend is not limited to stablecoins as Kraken recently announced it would halt trading and deposits of Monero (XMR) in the European Economic Area due to regulatory changes, following similar moves by Binance and OKX.