Tether, the issuer of USDT, has invested an undisclosed sum in the European stablecoin provider StablR as part of its strategy to promote asset adoption in the EU.
Tether Invests In StablR To Promote Stablecoin Adoption In Europe
Read more: https://t.co/y8HtQXEwjR— Tether (@Tether_to) December 17, 2024
“The European stablecoin market, with a capitalization of $400 million in euro-pegged coins, has experienced significant growth in recent months, driven by the momentum from the MiCA regulatory framework, which will come into full effect on December 30,” the press release stated.
StablR is the issuer of the “stablecoins” EURR and USDR. The company plans to utilize Tether’s Hadron platform. Introduced in November, this solution enables individuals and businesses to manage the full lifecycle of tokens.
The product emphasizes providing comprehensive tools for KYC/AML procedures, transaction monitoring, and risk management.
“The European stablecoin market is rapidly evolving and poised for further significant growth in line with global trends. Tether is proud to support initiatives like StablR that align with our vision of regulatory compliance, innovation, and asset accessibility,” said Paolo Ardoino, CEO of the USDT issuer.
In July, StablR received an Electronic Money Institution (EMI) license from the Malta Financial Services Authority.
Both of the firm’s regulated coins are compatible with ERC-20 and Solana. StablR aims to expand support for more networks using Hadron.
In November, Tether ceased the issuance of the euro-pegged stablecoin EURT, citing the tightening regulatory environment in the EU due to the implementation of MiCA.
Ardoino stated that they will focus on supporting third-party projects in Europe and promoting Hadron.
In the same month, Tether invested in the Dutch fintech company Quantoz, which announced the launch of the stablecoins EURQ and USDQ on the Ethereum blockchain.
The assets comply with regulatory requirements; they are issued by Quantoz Payments, a subsidiary licensed by the Dutch Central Bank.
Back in August, Ardoino called MiCA a threat to stablecoins and the banking system.
Several exchanges, including Coinbase, Uphold, Binance, and OKX, have announced restrictions on access for EU clients to unregulated “stablecoins.”