EURT is a stablecoin, a digital version of the euro, created by Tether. It functioned like other cryptocurrencies, allowing fast transfers and trading on exchanges, but its value was pegged 1:1 to the euro. The goal was to provide stability in the volatile crypto market, enabling users to make quick transactions without the risk of major price fluctuations.
Why Did Tether Create EURT?
Stablecoins like EURT bridge the gap between traditional finance and cryptocurrencies. They offer the speed and convenience of digital assets while protecting against extreme price volatility, which is common with Bitcoin and Ethereum. EURT was meant to become the European equivalent of USDT, the most widely used stablecoin pegged to the US dollar.
However, EURT never gained the same level of popularity as its dollar-pegged counterpart. By 2024, its market capitalization was only $27 million, a tiny fraction compared to the billions of dollars held in USDT.
How Did EURT Work?
EURT was an ERC-20 token, meaning it operated on the Ethereum blockchain and could be stored in most compatible cryptocurrency wallets. It followed the standard stablecoin mechanism:
- A user deposited euros on the Tether platform.
- Tether generated an equivalent amount of EURT tokens.
- The tokens could be stored, traded on exchanges, or used for payments.
- To redeem euros, the user returned the EURT, which was then burned.
This mechanism ensured that EURT’s value remained stable at around 1 euro.
Why is Tether Discontinuing EURT?
On November 27, 2024, Tether announced that it would no longer support EURT. The decision was driven by new European MiCA (Markets in Crypto-Assets) regulations, which impose strict rules on the issuance of digital currencies.
Tether determined that complying with these new regulations would be too costly and complicated, especially since EURT had low adoption. The company decided to focus on more popular products, such as USDT, and new stablecoins that meet MiCA requirements.
Users have until November 27, 2025, to exchange EURT for euros or other assets before the token is completely phased out.
What’s Next?
Tether is already working on new stablecoins that comply with EU regulations. One such project is EURQ, developed in partnership with the Dutch company Quantoz. These new tokens are designed to be fully legal in Europe and compliant with MiCA standards.
If you hold EURT, it’s important to exchange it for traditional euros or other cryptocurrencies as soon as possible before it is fully discontinued.
Summary
EURT was intended to be a digital euro but failed to gain widespread adoption. Due to new European regulations, Tether decided to discontinue it. If you own EURT, you have until November 2025 to exchange it.
