Tether Invests in StablR to Enhance Compliance with MiCA Regulations
As the Markets in Crypto Assets (MiCA) regulations are set to take effect by year-end, Tether's USDT presence remains limited. Tether has strategically invested in Malta-based stablecoin issuer StablR.
StablR operates two projects: the euro-backed StablR Euro (EURR) and the USD-pegged StablR USD (USDR). Following Tether's investment, both stablecoins will utilize Tether’s tokenization platform Hadron, which offers compliance tools, anti-money laundering (AML) checks, know-your-customer (KYC) processes, and risk management capabilities.
In July, StablR obtained an electronic money institution (EMI) license in Malta for its stablecoins. The European stablecoin market is experiencing notable growth as MiCA is implemented on December 30. Data from Crypto.com indicates that euro-based stablecoins have a market value of $367 million, with Stasis Euro (EURS) and Euro Coin (EURC) being the largest at $130 million and $90 million market caps, respectively. Tether aims to capitalize on this expanding market. Tether CEO Paolo Ardoino stated:
“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 size of the investment was not disclosed, but a Tether spokesperson confirmed that the company now holds a "significant equity position" in StablR.
Tether Strengthens EU Presence with Strategic Investment
This investment enhances Tether's EU presence and complements its strategy of supporting emerging firms through its Hadron platform as MiCA regulation approaches. This follows Tether's recent decision to discontinue its euro-pegged stablecoin and invest in Quantoz, a Netherlands-regulated payment firm and stablecoin issuer.
Tether has criticized MiCA, particularly the requirement for major stablecoin issuers to maintain a substantial portion of their backing assets in bank deposits. Tether currently holds over 83% of its USDT reserves in US government bonds, repo agreements, and money market funds.
StablR’s EMI license positions it to issue a compliant stablecoin under upcoming EU regulations. Gijs op de Weegh, StablR's founder and CEO, expressed commitment to delivering compliance, liquidity, and flexibility for institutions and merchants, stating, “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.”