Tether to Scrap Euro-Pegged Stablecoin Ahead of EU Rules

Tether Holdings Ltd. will halt issuance and operational support for its euro-pegged stablecoin, a month before new crypto rules are set to be fully implemented in the European Union.

The creation of new EURT tokens, a cryptocurrency tied to the value of the euro with roughly €25.6 million ($27 million) in circulation, has already been shuttered, Tether said in a statement on Wednesday. Anyone holding EURT should redeem their tokens within a year, the company added.

Stablecoins play a crucial role as gateways to cryptocurrency markets because they’re an intermediary step for using fiat money to buy tokens like Bitcoin, ...