Tether backs StablR to expand MiCA-compliant euro stablecoin offerings

Tether, the company behind the USDT stablecoin, has invested in European firm StablR.

The investment comes as the European Union prepares to implement its Crypto Asset Markets regulatory framework on December 30, 2024. MiCA provides legal certainty in a previously fragmented regulatory environment by setting clear compliance standards for stablecoin issuers.

StablR has launched EURR and USDR, two stablecoins designed to streamline transactions and offer cost savings to users.

Stablecoins are digital currencies that are pegged to fiat currencies such as the euro or dollar to minimize price fluctuations. These tokens play a critical role in facilitating cross-border payments and increasing liquidity for businesses and individuals.

With this clarity, European stablecoins are gaining momentum, with market capitalization approaching $400 million for euro-backed tokens alone.

Tether’s new tokenization platform: Hadron

StablR’s partnership with Tether also includes the use of Hadron, a tokenization platform launched by Tether in November. Hadron simplifies the process of converting assets such as stocks, bonds, and stablecoins into digital tokens.

Ensures compliance with stringent requirements under MiCA by providing tools for compliance, including Know Your Customer and Anti-Money Laundering measures.

“This investment demonstrates our support for Europe’s digital asset ecosystem,” said Tether CEO Paolo Ardoino. “With platforms like Hadron, we aim to increase compatibility and innovation while making tokenization more accessible.”

StablR’s stablecoins EURR and USDR are fully compatible and operate on the Ethereum (ETH) and Solana (SOL) networks. According to a statement shared with crypto.news, these tokens allow users to make secure and seamless transfers while adhering to regulatory standards.

StablR plans to expand to additional blockchain networks, increasing accessibility and liquidity in the digital economy.