Code & Chain · Signal Desk

Tether Withdraws EU License Application, Citing MiCA's 60% Bank Deposit Reserve Rule as Unworkable

Original sourceHTX Insights

Summary

Tether CEO Paolo Ardoino said Tether has abandoned its EU license application, mainly because MiCA requires large stablecoin issuers to hold at least 60% of reserves in bank deposits. The decision follows opposition to the reserve requirement from the European Central Bank and several EU national c…

Key points

  • This shows how major stablecoin issuers weigh EU rules in practice, offering a reference for assessing stablecoin supply and compliance costs in the European market.
  • A major issuer exiting the EU authorization process will change the structure of stablecoin supply in Europe and regulators' bargaining room.
  • European users and institutions choosing stablecoins must consider changes in issuers' authorization status and the range of compliant products available.

Editorial note

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