Tether, the issuer of the world’s largest stablecoin, USDT, has announced a strategic investment in StablR, a European startup specializing in euro-denominated stablecoins. This move aims to drive stablecoin adoption across Europe and expand Tether’s footprint in the region.
Promoting Stablecoin Adoption Across Europe
In its December 17 press release, Tether emphasized its goal of leveraging StablR’s expertise to integrate stablecoins into Europe’s financial, commerce, and technology sectors. Although the investment amount was undisclosed, the collaboration highlights Tether’s growing commitment to stablecoin innovation in European markets.
Key Collaboration Point: StablR will utilize Tether’s Hadron platform, launched in November 2024, to streamline operations and expand its stablecoin ecosystem.
Tether’s Hadron: Simplifying Tokenization
Hadron simplifies the process of converting traditional assets—stocks, bonds, and commodities—into digital tokens. It offers a comprehensive suite of tools for managing the token lifecycle, including:
- KYC (Know Your Customer)
- KYT (Know Your Transaction)
- AML (Anti-Money Laundering)
- Risk Management
By integrating Hadron, StablR plans to expand its offerings to multiple blockchain networks, enhancing the efficiency and accessibility of stablecoins in Europe.
StablR’s Role in Europe’s Stablecoin Ecosystem
StablR secured an Electronic Money Institution (EMI) license from the Malta Financial Services Authority in July 2024. This license ensures its stablecoin operations comply with the EU’s Markets in Crypto-Assets Regulation (MiCA).
Currently, StablR issues two stablecoins:
- EURR (Euro-pegged)
- USDR (USD-pegged)
Both stablecoins are compatible with ERC-20 and Solana networks, enabling seamless transactions across various wallets and platforms.
Gijs op de Weegh, CEO at StablR, highlighted the global surge in stablecoin adoption:
“The stablecoin market recently hit a record-breaking market cap of $190 billion, reflecting the rapid growth of the digital asset economy.”
Stablecoins Surpass Bitcoin for Daily Transactions
Stablecoins now account for over two-thirds of cryptocurrency transactions globally, according to Chainalysis. Their rising dominance surpasses Bitcoin (BTC) as the preferred asset for everyday transactions, particularly in economically challenged regions.
Key Regional Insights:
- Latin America & Sub-Saharan Africa: Stablecoin usage has grown by 40% year-on-year, as citizens seek protection from local currency instability.
- Eastern Asia & Eastern Europe: Stablecoin adoption has increased by 32% and 29%, respectively.
- Western Europe & North America: Institutional players are increasingly using stablecoins for liquidity management, settlements, and crypto market access.
Notably, the UK has emerged as a key hub for merchant services, where stablecoins consistently capture 60-80% of the market share each quarter.
Conclusion: A Major Step for European Crypto Adoption
Tether’s backing of StablR signals a significant push for stablecoin adoption in Europe. With Hadron’s tokenization capabilities and StablR’s regulatory compliance, this partnership aims to make stablecoins a cornerstone of Europe’s financial ecosystem.
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