As an experienced crypto investor with a keen eye for market trends and regulatory developments, I find Tether’s latest investment in StablR to be a strategic move that could potentially reap significant rewards. Europe’s stablecoin market is indeed rapidly evolving, and it’s exciting to see key players like Tether and StablR shaping this landscape.
Tether, known for being the largest stablecoin issuer globally, is bolstering its role in Europe’s stablecoin sector by making a fresh investment in StablR, based in Malta. This announcement was made on December 17th.
The investment reaffirms Tether’s commitment to the European market in its efforts to support regulated stablecoins as new stablecoins launch in the region.
Running two secure digital currency initiatives, namely the Euro-backed StablR Euro (EURR) and the US dollar-supported StablR USD (USDR), StablR plans to leverage Tether’s latest tokenization system, Hadron, for its operations.
Euro-based stablecoins are a $370 million market
In the last few months, there have been numerous advancements within the European market for stablecoins as we move closer to the implementation date of Europe’s Crypto-Assets Regulation (MiCA), which is scheduled to become fully active on December 30, 2024.
As per information from Crypto.com, the market for euro-backed stablecoins currently stands at approximately $367 million. The Stasis Euro (EURS) and Euro Coin (EURC) are the two largest players in this sector, boasting a market capitalization of around $130 million and $90 million respectively, as of the time this text was written.
According to Tether CEO Paolo Ardoino, the European market for stablecoins is swiftly advancing and is expected to witness substantial additional expansion in sync with wider industry developments.
“Tether is proud to support initiatives like StablR that align with our vision for fostering compliance, innovation, and accessibility in the European stablecoin market.”
StablR’s EURR has a $3 million market cap
When Tether announced its StablR investment, the euro-pegged EURR represented approximately 1% of the overall market capitalization of all stablecoins pegged to the Euro.
Based on information from CoinMarketCap, the market cap for StablR’s EURR stands at approximately $3.4 million, and there is a total circulation supply of around 5.7 million euros, which equates to roughly $5.9 million in U.S. dollars.
At this moment, StablR’s USD-backed cryptocurrency, USDR, isn’t listed on popular crypto data websites such as CoinGecko or CoinMarketCap.
With Hadron by Tether, it’s possible to effortlessly move EURR and USDR between Ethereum and Solana wallet addresses, as per the recent announcement.
Deribit backed StablR in a 3.3 million euro round in 2023
Established in the year 2023, StablR secured 3.3 million euros ($3.4 million) in a seed funding round, with participation from investors such as cryptocurrency derivatives exchange Deribit.
As an analyst, I can confirm that esteemed investors such as Theta Capital, blockchain patent technology pioneer Blocktech, innovative crypto-focused fund Maven 11, and sophisticated quantitative trading firm Folkvang joined our latest funding round.
By July 2024, StablR had secured a permit to function as a Digital Money Entity, thereby empowering them to introduce a stablecoin that strictly adheres to the latest European Union regulations governing stablecoins.
The founder and CEO of StablR, Gijs op de Weegh, stated that their stablecoin company is dedicated to providing top-tier compliance, liquidity, and adaptability for both institutional clients and merchants. In other words, they are working diligently to ensure exceptional levels of regulatory adherence, easy access to funds, and the ability to adjust quickly to various needs in the marketplace.
“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.”
As a crypto investor, I recently learned that the popular global cryptocurrency exchange, Coinbase, has stopped trading Tether’s USDt (USDT) stablecoin, due to the MiCA regulations. This announcement comes shortly after the event.
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2024-12-17 16:05