Tether invests in European stablecoin issuer StablR as Europe’s MiCA rules approach implementation later this month.
This move is an attempt to meet the regulatory requirements that demand stablecoins be issued in full compliance on European markets. StablR now has a license for an Electronic Money Institution from the Malta Financial Services Authority. It can position stablecoins that are MiCAR-compliant. The investment is made at a time when stablecoins issuers face pressure to follow strict guidelines. Exchanges have already or are planning to remove non-compliant tokens.
The European Union has adopted a uniform approach to stablecoins through the MiCA, ensuring that issuers of these coins maintain verifiable reserve and adhere to standardized governance. Tether is facing challenges, as the USDT stablecoin, which has been dominant historically in terms of global volume, gets delisted from exchanges seeking to be fully MiCA aligned.
Coinbase has also taken action to restrict or eliminate tokens not meeting these new regulations. Instead of modifying its existing stablecoins directly, Tether appears to be leveraging investment in entities aligned with Europe’s regulatory landscape. Tether made a significant investment in Quantoz last month, a project that will bring euro-based stablecoins on the market via Hadron.
Tether’s support for StablR, Quantoz and the other stablecoins allows it to attach its interest to coins that are fully authorized under European supervision and can be circulated. This could help Tether avoid previous issues with EURT or other offerings.
StablR’s founder sees institutional and retail users seeking compliant, redeemable assets. StablR is using Tether’s newly launched token platform, Hadron, to simplify the tokenization process for regulated digital assets. Hadron simplifies the process of converting various asset classes to tokens, while also integrating features for compliance and transaction monitoring. Tether’s stated support for European initiatives aligns with the region’s demand for reliability and adherence to MiCA’s standards.
The European stablecoin environment now includes products like StablR’s EURR and USDR; both issued as ERC-20 and Solana-compatible tokens. Stablecoins are regulated to ensure predictable liquidity and transparent collateral. Strict oversight has prompted issuers to focus on MiCA’s core requirements, including reserve composition and regular disclosures.
While Tether previously argued against elements of MiCA’s reserve mandates, citing systemic banking risks and lower returns compared to other investments, it now appears to be channeling resources toward entities meeting these criteria. It highlights the need for regulated routes over direct opposition to the rules.
In the last few months, major industry players have altered their strategies. Tether announced that it would no longer support EURT. The decision was made to retreat from efforts which did not match the changing regulatory landscape. This strategic shift to investing in companies like StablR that are launching stablecoins compliant with MiCA represents a pivot. Instead of challenging MiCA’s demands head-on, Tether invests in ventures prepared to operate within Europe’s legal framework.
As MiCA’s full set of provisions moves closer to enactment, issuers and investors anticipate stablecoin markets defined by standardization and risk management. By backing StablR’s regulated offerings, Tether secures a role in shaping this environment.
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