Stablecoin giant Tether has announced it will stop minting euro-backed tokens, citing regulatory hurdles in Europe.
The crypto company said Wednesday that it has stopped minting Euro Tether (EURT) and that those holding the token have until November 25, 2025 to redeem them.
EURT has very small trading volume: a little over $2 million worth of tokens traded hands in the past day, according to CoinGecko. Compare that to Tether’s dollar equivalent, USDT, which is the most traded cryptocurrency with a 24-hour trading volume mark of $83.7 billion.
“This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market,” the Wednesday announcement read.
“Until a more risk-averse framework is in place—one that fosters innovation and offers the stability and protection our users deserve—we have chosen to prioritize other initiatives.”
Tether did not immediately respond to Decrypt’s request for comment. Its CEO Paolo Ardoino wrote on X (formerly known as Twitter) that the decision to scrap the token “had not been taken lightly,” but that the company would now focus on expanding Hadron in the region—a tokenization platform for digital and real-world assets.
The European Union, the 27-country trading bloc that issues the euro, last year put tighter crypto regulation frameworks in place. Its Markets in Crypto Assets (MiCA) law set up in 2023 heavily focused on regulating the stablecoin industry.
A Dutch payment firm, Quantoz Payments, this month announced the launch of new stablecoins to align with European regulatory standards. Tether said it was backing Quantoz.
Tether mints stablecoins—that is, cryptocurrencies backed by stable assets. The idea is that assets tied to gold, dollars, or the euro can run on a blockchain and be used for crypto transactions.
Tether’s USDT token, backed by U.S. dollars, is its biggest product. Traders use the token to enter and exit trades without using traditional financial services. The token runs on a number of crypto networks, including Ethereum, Solana, Tron, and Polygon.
Both Tether the company and stablecoins have attracted criticism from some politicians and regulators, who claim that such crypto tokens are favored by criminals.
Edited by Andrew Hayward
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