The crypto giant Tether has decided to wind down its euro stablecoin and invest in European issuers compliant with MiCA regulations.
Tether's Strategic Investment in StablR
Tether announced its investment in European stablecoin issuer StablR, which holds an Electronic Money Institution (EMI) license in Malta. This marks Tether's second European investment in a month. The Hadron tokenization platform will provide operational support to StablR.
Regulatory Landscape: MiCA and Its Impact
The MiCA regulations, set to take effect by the year's end, are reshaping the stablecoin market in Europe. These rules reinforce requirements for issuers, including a mandate for major issuers to hold substantial reserves in bank deposits, a contrast to Tether's current reserve strategy.
Future of Stablecoins in Europe
Stablecoins like USDT represent a rapidly growing sector of digital assets, valued at approximately $200 billion. Despite the dominance of dollar stablecoins, euro-denominated stablecoins remain underdeveloped. Tether is navigating the regulatory changes by investing in compliant and innovative solutions.
Tether's move underscores the company's commitment to supporting the European stablecoin market through investments in MiCA-compliant solutions.
