Tether has announced its investment in Europe-based stablecoin provider StabIR as it looks to bolster adoption across the region.
With the stablecoin market seeing significant developments both in new projects and regulation, Tether’s move to invest in StablR is a notable milestone. Tether announced the investment on December 17.
USDT issuer invests in StabIR
According to the company, whose Tether (USDT) is the world’s largest US dollar-pegged stablecoin with over $140 billion in market cap, the investment reinforces the commitment to bring the regulated crypto assets to the European market.
A number of exchanges have recently confirmed plans to delist non-compliant stablecoins as the European Union’s Markets in Crypto Assets (MiCA) come into effect.
Tether itself said it was halting support for the Euro-pegged stablecoin EURT due to MiCA. EU’s MiCA regulations take full effect on December 30, 2024.
Investment in StabIR also comes as Europe welcomes several regulated stablecoin launches.
This includes StablR’s euro-pegged EURR and USD-pegged USDR.
In November this year, Tether announced an upcoming investment in Quantoz, the company that recently unveiled EURQ and USDQ.
With this investment, Tether is eyeing the growing EUR-pegged stablecoin market, which currently stands at $400 million.
“The European stablecoin market is rapidly evolving and it’s poised for significant further growth in line with broader trends. Tether is proud to support initiatives like StablR that align with our vision for fostering compliance, innovation, and accessibility in the European stablecoin market,” Paolo Ardiono, Tether’s chief executive officer, said.
Growth for the USDT issuer has also included the launch of Hadron by Tether, an asset tokenization platform.
Users can leverage the solution to simplify their digital tokens issuance processes.
Ardoino says its launch brings several benefits to users.
“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,” the Tether CEO added.
StablR will tap into Hadron by Tether for the tokenization of stablecoins, stocks, bonds and commodities.
Its partnership with the USDT issuer follows key other milestones in recent months, including securing an Electronic Money Institution license from Malta Financial Services Authority in July.
The EMI license allows StabIR to offer MiCA-compliant stablecoins – EURR and USDR. The two tokens are ERC-20 and Solana-compatible.
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