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Tether invests in StablR to promote stablecoin adoption in Europe

Tether invests in StablR to promote stablecoin adoption in Europe

The BlockThe Block2024/12/16 16:00
By:The Block

Quick Take Tether’s investment in European stablecoin provider StablR underscores its strategic push into the European market as the EU’s MiCA regulation comes into force at the end of the month. By integrating with Tether’s Hadron platform, StablR aims to expand its MiCAR-compliant EURR and USDR stablecoins across major blockchains.

Tether invests in StablR to promote stablecoin adoption in Europe image 0

Tether has announced an investment in StablR, a European stablecoin provider, as part of its strategy to bolster adoption of regulated digital assets in the Europe market.

The investment highlights Tether’s growing focus on the region, particularly as regulatory frameworks like the EU’s Markets in Crypto-Assets (MiCA) regulation begins to come into force later this month.

StablR, which recently launched two stablecoins—the euro-pegged EURR and the dollar-pegged—is positioned to offer users improved liquidity management, reduced transaction costs, and significant savings. The collaboration signals Tether’s confidence in fully compliant stablecoins as the foundation for a burgeoning digital asset ecosystem, a statement by the stablecoin issuer said. "The investment in StablR demonstrates our support for the European digital asset ecosystem," Tether CEO Paolo Ardoino said.

StablR CEO Gijs op de Weegh emphasized the timing of Tether’s investment, pointing to the rapid growth of the global stablecoin market, which recently reached a record $190 billion in market capitalization. "From the outset, StablR has been laser-focused on delivering unmatched compliance, liquidity, and flexibility for institutions and merchants," Gijs said. "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.”

MiCA and the evolving European stablecoin market

The European stablecoin market has gained considerable momentum, particularly for euro-pegged assets, which now command a market capitalization approaching $400 million. The EU’s MiCA framework, set to take full effect on Dec. 30, mandates stringent compliance requirements for stablecoin issuers and exchanges operating in the region. This regulatory clarity has provided a favorable environment for companies like StablR to thrive.

StablR’s EURR and USDR stablecoins are MiCAR-compliant and backed by full reserves, addressing demand for secure, transparent, and easily redeemable digital assets. Both stablecoins are issued as ERC-20 tokens on Ethereum and are also compatible with the Solana blockchain, ensuring broad interoperability across major blockchain ecosystems.

Leveraging Tether’s Hadron platform

A key aspect of the collaboration is StablR’s integration with Hadron by Tether , a tokenization platform launched last month. Hadron simplifies the process of converting real-world assets—including stocks, bonds, commodities, and stablecoins—into digital tokens. The platform offers comprehensive compliance tools, including Know-Your-Customer (KYC), Anti-Money-Laundering (AML), risk management, and transaction monitoring capabilities.

By utilizing Hadron, StablR aims to expand its stablecoin offerings across additional blockchain networks, enhancing accessibility and liquidity for users.

Earlier this year, StablR secured an Electronic Money Institution (EMI) license from the Malta Financial Services Authority , enabling the issuance of fully regulated stablecoins across Europe.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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