Tether Supports StablR to Expand MiCA-Compliant Euro-Stablecoin

The company behind the USDT stablecoin, Tether, has made an investment in the European company StablR.

The investment comes at a time when the European Union is preparing to implement the regulatory framework Markets in Crypto-Assets (MiCA) on December 30, 2024. MiCA establishes clear compliance standards for stablecoin issuers, providing legal certainty in a previously fragmented regulatory environment.

StablR has introduced two stablecoins, namely the EURR and the USDR, which are designed to streamline transactions and provide cost savings for users.

Stablecoins are digital currencies that are pegged to a fiat currency, such as the euro or dollar, to minimize price fluctuations. These tokens play a crucial role in facilitating cross-border payments and improving liquidity for businesses and individuals.

Thanks to this clarity, European stablecoins are gaining momentum, with a market capitalization for euro-based tokens alone nearing $400 million.

The collaboration between StablR and Tether also includes the use of Hadron, a tokenization platform that Tether launched in November. Hadron simplifies the process of converting assets, such as stocks, bonds and stablecoins, into digital tokens.

The platform provides tools for regulatory compliance, including Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) measures, to meet the stringent MiCA requirements. Paolo Ardoino, CEO of Tether, stated:

“This investment demonstrates our support for the European digital asset ecosystem. With platforms like Hadron, we aim to stimulate compliance and innovation and make tokenization more accessible.”

StablR’s stablecoins, EURR and USDR, are fully compliant with regulations and operate on the Ethereum and Solana networks. These tokens enable users to perform secure and seamless transactions while adhering to the prevailing regulatory standards, according to a statement.

StablR plans to expand to additional blockchain networks, which will further enhance accessibility and liquidity within the digital economy.