Tether has officially concluded its Euro stablecoin journey by ceasing EURT redemptions today, November 27. This action represents the culmination of ongoing tensions with European regulators, a situation that has been brewing for years.
The cessation of EURT redemptions signals the end of a stablecoin experiment that began years ago. Although the minting of EURT had already halted in 2022, today marks the definitive moment when users must exit or risk losing their holdings permanently.
Europe”s evolving regulatory framework, particularly the new MiCA rules, necessitates that stablecoin issuers maintain most of their reserves within the European banking system. Tether, however, has expressed a clear disinterest in this requirement. From the company”s viewpoint, relying on unsecured bank deposits creates significant systemic risks, echoing concerns raised during the collapse of Circle amidst the Silicon Valley Bank crisis.
Paolo Ardoino, Tether”s CTO, has consistently articulated this position, emphasizing that the company will not alter its reserve structure merely to sustain the EURT. Today”s announcement formalizes this strategic decision.
However, this move does not indicate Tether”s withdrawal from the European market. Instead, it represents a strategic shift. Rather than confronting MiCA directly with EURT, Tether is now collaborating with Quantoz Payments, a Dutch fintech that is gearing up to launch MiCA-compliant stablecoins, namely EURQ and USDQ, utilizing Tether”s innovative Hadron technology.
Quantoz is equipped with the necessary European licenses, banking partnerships, and regulatory obligations, while Tether provides technological support and financial backing. This partnership is seen as a more streamlined approach, allowing Tether to maintain its presence in the Euro market without having to reconfigure its reserve strategy.
Moreover, this collaboration positions Quantoz as a formidable player as it prepares to roll out regulated stablecoins in 2026, ensuring users have access to stable products that won”t be abruptly discontinued as regulations tighten.
In a year characterized by stringent regulatory scrutiny, companies within the cryptocurrency space are making calculated decisions about their operational focus. Tether”s exit from the EURT landscape is a clear indication of its commitment to avoiding untenable situations, while it continues to strengthen its foothold in the USD market and explore opportunities in gold and other real-world asset (RWA) ventures.
As of today, the narrative surrounding EURT concludes, while Tether”s ambitions in Europe are just beginning a new chapter.
