Tether backs European stablecoin firm StablR amid USDT uncertainty

Tether, the issuer of the world’s largest stablecoin by market cap, is strengthening its presence in Europe’s stablecoin market with an investment in Malta-based StablR, the company said on Dec. 17.

The investment reaffirms Tether’s commitment to the European market in its efforts to support regulated stablecoins as new ones launch in the region.

StablR operates two stablecoin projects: the euro-backed StablR Euro (EURR) and the United States dollar-pegged StablR USD (USDR). Both tokens will utilize Tether’s tokenization platform, Hadron.

Euro-based stablecoins are a $370 million market

The European stablecoin market has experienced many developments in recent months as Europe’s Markets in Crypto-Assets Regulation (MiCA) is set to take full effect on Dec. 30.

According to data from Crypto.com, euro-based stablecoins are a $367 million market at the time of writing, with the Stasis Euro (EURS) and the Euro Coin (EURC) representing the biggest stablecoins, with a market cap of $130 million and $90 million, respectively.

Top five euro-based stablecoins by market capitalization. Source: Crypto.com

“The European stablecoin market is rapidly evolving, and it’s poised for significant further growth in line with broader trends,” Tether CEO Paolo Ardoino said, adding:

“Tether is proud to support initiatives like StablR that align with our vision for fostering compliance, innovation, and accessibility in the European stablecoin market.”

StablR’s EURR has a $3 million market cap

At the time of Tether’s StablR investment announcement, StablR’s euro-pegged EURR makes up about 1% of the total market cap of all euro-based stablecoins.

StablR’s EURR has a $3.4 million market capitalization with a total supply of 5.7 million euros ($5.9 million), according to CoinMarketCap data.

StablR’s US dollar stablecoin, USDR, was not available on crypto data platforms like CoinGecko or CoinMarketCap at the time of writing.

Utilizing Hadron by Tether, EURR and USDR can be transferred to any Ethereum or Solana wallet address, the announcement said.

Deribit backed StablR in a 3.3 million euro round in 2023

Founded in 2023, StablR raised 3.3 million euros ($3.4 million) in a seed round featuring investors like cryptocurrency derivatives exchange Deribit.

Additional seed round investors included Theta Capital, blockchain patent technology firm Blocktech, the crypto-native fund Maven 11 and the quantitative trading firm Folkvang.

Related: ‘No to CBDC, yes to Bitcoin’ — European MP calls for EU BTC reserve

In July, StablR acquired a license to operate as an Electronic Money Institution, enabling the firm to issue a stablecoin fully compliant with new EU stablecoin regulations.

StablR founder and CEO Gijs op de Weegh said that the stablecoin firm has been “laser-focused on delivering unmatched compliance, liquidity and flexibility for institutions and merchants,” adding:

“With the support of these new investors, that’s exactly what we’re delivering. This is a new era for stablecoins, and StablR is very much at the helm.”

The news came shortly after major global cryptocurrency exchange Coinbase delisted Tether’s USDt (USDT) stablecoin, citing MiCA regulations.

Tether also announced the suspension of its euro-based stablecoin, EURt (EURT), in November. At the time of the announcement, EURT had a $27 million market capitalization.

Magazine: 13 Christmas gifts that Bitcoin and crypto degens will love