5 days ago
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The company aims to enhance compliance and expand digital asset services within new regulatory frameworks.
Key Takeaways
- Tether invests in StablR to enhance the adoption of stablecoins in Europe.
- StablR utilizes Tether's Hadron platform for asset tokenization and regulatory compliance.
Tether has invested in StablR, a European stablecoin provider, to accelerate stablecoin adoption across Europe, according to a Dec. 17 statement.
The investment comes as the deadline for full implementation of the EU’s Markets in Crypto-Assets (MiCA) regulation approaches. StablR has recently secured an Electronic Money Institution (EMI) License in Malta, which allows the company to issue EURR, a MiCA-compliant stablecoin.
As part of the deal, StablR will utilize Hadron by Tether, a tokenization platform launched last month that enables the tokenization of various assets including stocks, bonds, commodities, and stablecoins. The platform provides comprehensive compliance tools including KYC, AML, Risk Management, and market monitoring capabilities.
The European stablecoin market is set for substantial future growth, said Tether CEO Paolo Ardoino. The move demonstrates Tether’s commitment to compliance, innovation, and accessibility.
“This investment demonstrates our support for the European digital asset ecosystem. The deployment of Hadron by Tether, our asset tokenization platform that simplifies the process of converting various assets into digital tokens, is a significant step towards an economy with unprecedented benefits, flexibility, and transparency,” Paolo stated.
“We’ve seen an incredible surge in the global stablecoin market, perfectly aligned with the growing momentum of the digital assets economy. Just last month, the global stablecoin market shattered records, reaching an unprecedented market cap of $190 billion. From the outset, StablR has been laser-focused on delivering unmatched compliance, liquidity, and flexibility for institutions, and merchants,” StablR CEO Gijs op de Weegh noted.
In addition to EURR, StablR offers USDR, a stablecoin pegged to the US dollar like USDT and USDC. The product is aimed at complementing the EURR stablecoin. The company plans to enhance the interoperability of its stablecoins—currently available as ERC-20 and Solana-compatible tokens—by expanding to additional networks via Hadron by Tether.
Crypto businesses are actively preparing for the full implementation of the MiCA regulation, which is set to take effect on December 30, 2024. The regulatory framework will require exchanges and stablecoin issuers to meet strict compliance standards across the jurisdiction.
Major crypto exchanges have taken steps to suspend or limit support for non-compliant stablecoins.
OKX has removed trading pairs for USDT in the European Economic Area EEA to align with MiCA regulations. Uphold has announced that it will discontinue support for several stablecoins, including USDT and DAI, ahead of MiCA implementation.
Binance and Coinbase have begun implementing restrictions on stablecoins that fail to meet the requirements set by the new standards.
Tether said last month it would end support for its euro-pegged stablecoin EURT. The company is now focusing on new projects, including stablecoins that comply with MiCA regulations.
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English (US) ·