In a significant development for the stablecoin landscape, Tether has launched its euro‑backed stablecoin, EURT, on the Stellar blockchain. This expansion not only bolsters Tether’s cross-chain presence but also unlocks new efficiencies for euro-denominated digital transactions across Europe. With Stellar’s reputation for ultra-low transaction costs and rapid finality, the move positions EURT as a competitive player in the growing stablecoin economy—especially within the eurozone.
Why Tether Chose Stellar for EURT
Tether’s choice to launch EURT on Stellar is a strategic one. The Stellar blockchain is engineered for high-speed asset transfers and has a long-standing focus on financial inclusion, cross-border remittances, and real-world use cases. Its consensus protocol enables near-instant finality—often under five seconds—while maintaining transaction fees as low as a fraction of a cent.
For Tether, this translates to a robust environment where EURT can thrive as both a payment vehicle and a programmable settlement asset. With growing European scrutiny on stablecoins operating over congested and expensive chains like Ethereum, Stellar offers a regulatory-friendly alternative with real utility for financial institutions and fintech platforms.
Growing Demand for Euro-Denominated Stablecoins
While USD-backed stablecoins like USDT and USDC dominate market share, there has been a rising call for euro-based alternatives. The euro remains the world’s second most-traded fiat currency, and yet euro-pegged stablecoins still account for less than 5% of stablecoin transaction volume.
Tether’s expansion of EURT aims to change that. According to Paolo Ardoino, Tether CEO, “Launching on Stellar helps bring EURT closer to mainstream usability, especially in the eurozone, where fast and transparent digital payments are essential.”
EURT’s introduction on Stellar makes it more accessible to European fintechs, remittance platforms, and even decentralized applications looking to integrate a low-volatility, euro-pegged asset. The move also complements recent EU regulations around MiCA (Markets in Crypto-Assets), which place emphasis on fiat-backed stablecoin transparency and efficiency.
Use Cases: From Cross-Border Transfers to Payroll
The Stellar-based EURT opens doors to several practical applications. First and foremost is cross-border payment settlement. Companies can leverage EURT to move funds between euro and non-euro countries in seconds, without involving intermediaries or dealing with FX conversion delays.
Payroll systems, especially for digital-native businesses and DAOs operating across Europe, can also use EURT for real-time salary disbursement. The stable value and low transaction fees make it a more viable alternative to traditional banking rails or volatile crypto payments.
Decentralized finance platforms may also find value in adopting EURT as collateral or lending instruments, offering exposure to euros without holding volatile assets. With Stellar’s integration with wallets and institutional-grade custodians, adoption could scale rapidly.
A Technological Perspective: Stellar’s Asset Issuance Framework
Unlike some chains that require custom smart contracts for token issuance, Stellar offers built-in asset issuance and compliance tools. This framework allows Tether to create, manage, and distribute EURT on Stellar with built-in trustlines, flagging mechanisms, and payment authorisation flows.
This design reduces the likelihood of code-level bugs or exploits and provides enhanced visibility for compliance—a growing requirement among European regulators. It also allows fintech developers to integrate EURT without building custom contract logic, accelerating deployment across the ecosystem.
Regulatory Lens: The MiCA Influence
The launch of EURT on Stellar comes amid Europe’s implementation of the MiCA regulatory framework. Under MiCA, fiat-backed stablecoins must adhere to standards on reserve transparency, redemption guarantees, and operational clarity.
Tether has taken proactive steps in recent months to align EURT with MiCA requirements, including independent audits of reserves, monthly attestation reports, and enhanced KYC/AML procedures for corporate partners. Launching on Stellar—which maintains an open ledger and rapid auditability—could help further meet those regulatory expectations.
This launch may also prompt other issuers to evaluate chain selection not just for speed or cost, but also for compliance readiness and real-world adoption viability.
Challenges Ahead: Liquidity and Awareness
Despite the strategic fit, EURT faces challenges. Unlike USDT or USDC, which benefit from deep liquidity and entrenched exchange listings, EURT is still growing its presence. Stellar’s user base, while active in certain remittance corridors, is modest compared to Ethereum or Tron.
For EURT to succeed, Tether will need to drive exchange integrations, incentivize liquidity providers, and forge partnerships with fintech and Web3 wallets in the eurozone. Building retail and developer awareness remains a crucial next step.
Market analysts also note that competing euro-backed stablecoins—such as EUROe and Angle Protocol’s agEUR—are gaining traction through DeFi integrations and governance models. Tether will need to differentiate EURT through scale, usability, and transparency.
The Bigger Picture: Stablecoins in a Multi-Chain World
Tether’s move highlights an industry-wide shift toward a multi-chain stablecoin economy. As demand for cheap, fast, and compliant digital money grows, issuers are spreading across chains with unique value propositions. Solana, Polygon, Avalanche, and now Stellar are all hosts to stablecoins with varying performance and regulatory profiles.
For users and developers, this diversity increases optionality and reduces the dominance of Ethereum-based tokens. It also encourages wallet providers and infrastructure firms to build cross-chain capabilities—laying the groundwork for truly borderless, fiat-pegged money.
Conclusion
The launch of EURT on Stellar signals a new chapter for stablecoin adoption in Europe. By leveraging Stellar’s efficient infrastructure and aligning with eurozone compliance needs, Tether positions EURT as a credible alternative for digital payments, DeFi participation, and cross-border settlements. While hurdles remain—particularly around liquidity and ecosystem growth—the initiative underscores Tether’s strategic pivot toward utility and regional relevance. In the evolving world of programmable finance, EURT may soon play a bigger role in how Europe moves money on-chain.
