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Tether Targets Europe with Strategic Investment in MiCA-Compliant StablR
Tether, the world’s largest stablecoin issuer, has announced a strategic investment in StablR, a European stablecoin issuer that complies with the new MiCA (Markets in Crypto-assets) regulations. This move marks Tether’s attempt to expand its presence in the European cryptocurrency market.
StablR, which offers EURR and USDR stablecoins, is fully authorized by the Malta Financial Services Authority. This allows it to issue these assets under the stringent MiCA standards. The company will also utilize Hadron, a tokenization platform launched by Tether last month, to simplify the process of converting traditional assets into digital tokens.
The European stablecoin market has grown significantly in recent months, with a valuation nearing $400 million. This growth is largely attributed to the impending implementation of MiCA regulations. By investing in StablR, Tether aims to adapt to this changing landscape and maintain its leadership position.
Tether’s decision to invest in StablR rather than modifying its existing stablecoin, USDT, highlights the company’s commitment to aligning with European regulatory requirements without sacrificing its global reputation. Despite being the global leader in transaction volume, USDT has faced challenges due to its non-compliance with MiCA rules, resulting in delistings from several European crypto exchanges.
Tether’s strategy is to support compliant stablecoin issuers like StablR instead of altering its existing asset. This approach enables Tether to maintain its dominance while maintaining its reputation for regulatory compliance.
Source: crypto-economy.com
