- Tether halts EURt stablecoin issuance, focusing on its core asset, USDT, for market stability.
- EURt holders can redeem tokens for euros at a 1:1 value as Tether winds down the euro-backed coin.
- Tether’s decision to end EURt issuance aligns with streamlining efforts amidst market volatility.
Tether announced on November 27 that it would end support for its Euro-pegged stablecoin, EURt. The company stated that it stopped minting new EURt tokens and will phase out coin-related operations in the coming months.
According to Tether, it will not produce additional EURt tokens, thereby ending the development of the stablecoin. Tether made this decision after thoroughly examining the company’s overall strategy and market conditions.
Reason Behind the Move
Tether did not provide a specific explanation for suspending EURt supply. However, it mentioned its ongoing efforts to streamline and focus on its most popular stablecoins, such as USDT. The company emphasized its dedication to maintaining liquidity and stability in its core offerings. It aims to provide more stability in a market that continues to experience volatility.
The company expects the transition to be smooth. Tether stated that it will recognize the full redemption value of the euro-backed stablecoins and that customers could exchange their EURt tokens for euros at a 1:1 ratio. According to the company’s press release, the procedure for redeeming will continue as usual.
Tether’s Focus on Core Offerings
Tether’s primary stablecoin, USDT, continues to dominate the stablecoin market. In addition, it offers a popular option for those seeking a stable digital asset. The company’s decision is consistent with its goal of focusing resources and work on sustaining and extending the USDT platform. This move is seen as part of a broader trend among digital currency issuers to focus on fewer, higher-demand products.
As the market adjusts to this development, Tether’s future goals remain centered on maintaining stability and liquidity. Moreover, the firm has not ruled out the introduction of new pegged stablecoins in the future. For now, it is focused entirely on optimizing USDT and maintaining its current customers.
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