As part of the deal, StablR will leverage Tether's Hadron tokenization platform for compliance, AML, KYC, and risk management.
With Europe’s Markets in Crypto Assets (MiCA) regulations coming into effect by the year-end, Tether’s USDT presence remained in the doldrums. However, Tether players a smart move by investing in European stablecoin company StablR.
This Malta-based stablecoin issuer StablR runs two stablecoin projects – the euro-backed StablR Euro (EURR) and the USD-pegged StablR USD (USDR). Following this investment by Tether, both these StablR stablecoins will use Tether’s tokenization platform Hadron. This platform will provide tools for compliance, anti-money laundering (AML) checks, know-your-customer (KYC), risk management, etc.
Earlier this year in July, StablR secured an electronic money institution (EMI) license in Malta for both its stablecoins. The European stablecoin market has seen significant developments recently, as Europe’s Markets in Crypto-Assets Regulation (MiCA) is set to come into full effect on December 30.
Data from Crypto.com reveals that euro-based stablecoins currently represent a $367 million market. Among these, the Stasis Euro (EURS) and Euro Coin (EURC) are the largest, with market caps of $130 million and $90 million, respectively. Amid this growing market, Tether doesn’t want to miss the opportunity and is willing to expand its footprint. Speaking on the development, Tether CEO Paolo Ardoino said:
“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.”
The firms did not reveal the investment size or valuation. However, a Tether spokesperson informed that the company now holds a “significant equity position” in StablR.
Tether continues its strategy to maintain a strong presence in the European Union, with its latest investment in StablR. This move aligns with Tether’s approach to backing emerging firms and providing services via its tokenization platform, Hadron, as the EU’s Markets in Crypto-Assets (MiCA) regulation comes into effect later this year.
The investment comes after Tether’s decision to shut down its own euro-pegged stablecoin last month. The company has also invested in Quantoz, a Netherlands-regulated payment firm and stablecoin issuer.
Tether has been an outspoken critic of MiCA, particularly the regulation’s requirement for major stablecoin issuers to hold a significant portion of their backing assets in bank deposits. In contrast, Tether holds more than 83% of its USDT reserves in US government bonds, repo agreements, and money market funds.
In July, StablR secured a license to operate as an Electronic Money Institution, positioning the firm to issue a stablecoin fully compliant with the upcoming EU stablecoin regulations. StablR’s founder and CEO, Gijs op de Weegh, emphasized that the company has been “laser-focused on delivering unmatched compliance, liquidity, and flexibility for institutions and merchants”.
“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,” Weegh said.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
