Tether, the issuer of the world's largest stablecoin, USDt (USDT), has announced it will cease support for its euro-pegged stablecoin, EURt (EURT). The company is urging users to redeem their holdings by November 2025, marking the end of EURt on all blockchains.

Launched in 2016, EURt was designed to mirror the euro's value on a 1:1 basis, offering a stable option in the volatile cryptocurrency market. Despite its potential, EURt only accounts for $27 million in market capitalization, a mere 0.02% of Tether’s USDt dominance. The last EURt acquisition request was processed in 2022, and no new tokens have been minted since.

Tether attributes the decision to evolving regulatory pressures in Europe, particularly the European Markets in Crypto-Assets (MiCA) Regulation, set to take full effect by late 2024. Tether has criticized these regulations for creating systemic risks and stifling innovation. “Until a more risk-averse framework is in place, we will prioritize other initiatives,” the company stated.

While phasing out EURt, Tether is pivoting toward MiCA-compliant stablecoins, including EURq and USDq, developed by Dutch fintech firm Quantoz Payments. These stablecoins, supported by Tether’s Hadron technology, aim to simplify issuance, enhance compliance, and promote blockchain innovation. Tether’s CEO emphasized that these investments align with the company’s vision of a more inclusive and adaptable financial ecosystem.

This strategic shift underscores Tether’s intent to adapt to changing regulations while fostering innovation in the stablecoin market, signaling its commitment to redefining the future of digital finance.