Tether
Tether is a company that issues digital tokens, including the US dollar-linked stablecoin USD₮. A stablecoin is designed to track the value of a reference currency so users can transfer currency-linked value on a blockchain. The issuer supplies the token and holds reserves that support its promised value, while blockchain networks record transfers between users.
Tether tokens circulate on multiple blockchain networks and can be obtained through supported wallets and trading platforms. Users transfer USD₮ between compatible accounts, while conversion into dollars involves the issuer or a service provider. Redemption access depends on account requirements, so a token holding is different from dollars held in a bank account.
USDT in payments
Tether started as Realcoin and took its current name the same year. Next to the dollar token it issues a gold-backed token, Tether Gold, whose gold Tether says sits in a vault in Switzerland, as tokenized gold explains. Tether has invested in LemFi to support planned USDT settlement for remittances and in Speed, which combines Lightning payments with stablecoin settlement. Stablecoin payments shows how banks and payment firms use such tokens, and stablecoin settlement covers settlement between institutions.
Tether and MiCA
ESMA, the EU securities regulator, told national supervisors to make crypto service providers stop offering stablecoins that do not comply with MiCA, and set a deadline at the end of the first quarter of 2025; the ESMA guidance names no token, and press coverage such as Cointelegraph read it as aimed at USDT. Tether also wound down its euro token: it ceased EUR₮ redemptions on all supported blockchains, with CEO Paolo Ardoino saying Tether chose to prioritize other initiatives and that "Hadron by Tether will remain our priority in the region".
Hadron is the Tether platform for issuing and managing tokenized assets. Banks and companies can use it to issue their own tokens. Tether itself no longer issues a euro token.
Reserves and attestations
Tether publishes quarterly attestation reports on its reserves, signed off by BDO Italia, and in 2021 the US Commodity Futures Trading Commission fined Tether 41 million US dollars for misleading statements about those reserves. In the US, Tether announced USA₮, a separate dollar stablecoin planned under US regulation. The knowledge hub explains what stablecoins are backed by.
Upcoming stablecoin and payments events
Stablecoins at Finance Loop events
Stablecoins, tokenized funds, custody and payments are the program of Capital & Code in Frankfurt, with Finance Loop as media partner. The Digital Euro Association, a partner of Finance Loop, counts Raiffeisen Bank International, Union Investment, Ripple and BitGo among its members.
Payments & Digital Money
Risk & Compliance
Is USDT allowed in the EU?
Tether has no MiCA authorization for USDT. ESMA told supervisors to make crypto service providers stop offering non-compliant stablecoins, so regulated EU platforms no longer sell USDT, while holders can still keep or withdraw it.
What backs Tether's USDT?
Tether says each USD₮ is backed by its reserves. Quarterly attestation reports on those reserves are signed off by BDO Italia.
Does Tether have a euro stablecoin?
Not anymore. Tether stopped redeeming EUR₮ on all supported blockchains and wound the token down. In Europe its priority is now Hadron, its platform for tokenized assets.
Stablecoins in Europe
Tether and Finance Loop
Finance Loop is media partner of Capital & Code in Frankfurt, a conference on stablecoins, tokenized funds, custody and payments. Stablecoins belong to Finance Loop's Payments & Digital Money track.
Finance Loop is a professional network supporting the institutional use of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.