Tether Backs StablR to Promote Stablecoin Adoption in Europe Amid MiCA Compliance

Dec 17, 2024, 01:14 PM

Tether, the company behind the largest stablecoin USDT, has invested in StablR, a European stablecoin provider, to promote the adoption of stablecoins in Europe. This investment aligns with Tether's strategy to support smaller issuers that comply with the European Union's Markets in Crypto-Assets (MiCA) regulations, as Tether has decided to shutter its own euro-pegged stablecoin. StablR, which secured an Electronic Money Institution (EMI) license from the Malta Financial Services Authority in July, will leverage Tether's tokenization platform Hadron to enhance compliance, liquidity, and interoperability within the blockchain ecosystem. StablR offers EURR and USDR stablecoins, both issued as ERC-20 and Solana-compatible tokens. Tether's CEO Paolo Ardoino emphasized the company's commitment to fostering compliance, innovation, and accessibility in the European stablecoin market. StablR's CEO Gijs op de Weegh highlighted the surge in the global stablecoin market, aligning with the growing momentum of the digital assets economy. The move comes as the EU's MiCA framework, set to come into full effect by the end of 2024, mandates exchanges and stablecoin issuers to adhere to stringent compliance standards. Tether's investment in StablR signals its commitment to fostering innovation and compliance in the European digital asset landscape.