Tether 'abandons' USDT and will launch another stablecoin in Europe
Tether, the largest issuer of stablecoins on the market, announced the launch of a new stable cryptocurrency adapted to European Union (EU) regulations.
Paolo Ardoino, CEO of the company, informed that the new asset will reach the market in order to comply with the requirements of the Regulation for the Cryptoassets Market (MiCA), which will come into force soon. As a result, the popular USDT, linked to the dollar, will no longer circulate in Europe, giving way to a specific stablecoin for the region.
The decision takes place in a context of significant regulatory changes in the European bloc. From December 30, 2024, all stable coins traded in the EU will require pre-registration and must comply with the criteria set out by MiCA.
Cryptocurrency exchanges operating in Europe, such as Coinbase, have already started announcing the withdrawal of assets that do not meet the new rules. This includes USDT, which is facing difficulties adapting to imposed regulations.
Stablecoin da Tether
Ardoino highlighted that some aspects of MiCA make the operation of stablecoins more complex, especially in relation to local banking infrastructure and the risks that may arise for these assets.
However, the CEO assured that Tether is developing a technological solution tailored for the European market. And that includes a new stablecoin.
“We are working on a product that will meet the regulatory and market needs of the European Union, and we are excited about this strategy,” said Ardoino.
MiCA regulation seeks to establish a safer and more transparent environment for cryptocurrencies and stablecoins, especially in a market as structured as the European one.
According to experts, such as Spanish lawyer Cristina Carrascosa, specialized in cryptoactives, Tether's new proposal could be a major step forward for the company in complying with regulations. Carrascosa praised the strategy of creating a backed token specific to Europe, adapted to regulatory requirements, something that many believed would be difficult for Tether.
There is still no official date for the launch of the new stablecoin. However, Ardoino has assured that the coin will be available before the end of the year, ensuring a smooth transition for European users.
Tether, which already has a solid position in emerging markets with USDT, now faces the challenge of consolidating its presence in Europe with an asset that respects local regulations.