Tether is investing in European stablecoin issuer StablR as Europe’s MiCA rules are implemented later this month.
This move signals an attempt to navigate the regulatory conditions that require fully compliant issuance of stablecoins in European markets. StablR, now backed by Tether, has an Electronic Money Institution license from the Malta Financial Services Authority, allowing it to position its stablecoins as MiCAR-compatible assets. This investment comes at a time when stablecoin issuers are under pressure to adhere to strict guidelines, with exchanges having already delisted or planning to delist non-compliant tokens.
European Union regulators have taken a uniform approach through MiCA to ensure that stablecoin issuers maintain verifiable reserves and operate under standardized governance. Tether, historically dominant in global stablecoin volume, is facing challenges as its flagship USDT faces delistings from exchanges seeking full MiCA alignment.
Coinbase and others have taken steps to remove or restrict access to tokens that do not adhere to these new rules. Rather than directly adapting existing stablecoins, Tether looks to encourage investments in entities that are aligned with the European regulatory landscape. Last month, Tether invested in Quantoz, another project that markets euro-based stablecoins through Hadron.
By backing StablR and Quantoz, Tether is placing its stakes in stablecoins that are fully authorized for circulation under European supervision, potentially circumventing previous issues associated with EURT and other offerings.
StablR’s founder sees that institutional and retail users are looking for compliant, redeemable assets. StablR uses Tether’s recently launched token platform, Hadron, to simplify the tokenization process for regulated digital assets. Hadron streamlines the conversion of different asset classes into tokens and integrates compliance features and transaction monitoring. Tether’s outspoken support for European initiatives is in line with the region’s demand for reliability and compliance with MiCA standards.
The European stablecoin environment now includes products such as StablR’s EURR and USDR; both issued as ERC-20 and Solana compatible tokens. These stablecoins operate within a regulated framework designed to provide predictable liquidity management and transparent collateral structures. Strict supervision has pushed issuers to focus on core MiCA requirements, including reserve composition and regular disclosure.
While Tether previously argued against elements of MiCA’s reserve mandates, citing systemically important banking risks and lower returns compared to other investments, it now appears to be channeling resources to entities that meet these criteria. In doing so, it emphasizes the importance of regulated pathways over direct confrontation with the rules.
In recent months, key industry participants have adjusted their strategies. Tether decided to end support for EURT, signaling a retreat from efforts that were not in line with evolving regulations. The shift toward investing in companies like StablR that are launching MiCA-compatible stablecoins represents a strategic pivot. Rather than challenging MiCA’s demands head-on, Tether invests in companies that are willing to operate within the European legal framework.
As MiCA’s full set of provisions moves closer to entry into force, issuers and investors anticipate stablecoin markets defined by standardization and risk management. By supporting StablR’s regulated offering, Tether ensures its role in shaping this environment.
