European financial giant Revolut has announced a phased discontinuation of support for Tether's USDT stablecoin. This decision affects millions of platform users who actively used this asset for trading and capital storage.
According to the official notice, purchasing USDT on the platform will only be available until July 6. Starting July 30, Revolut will completely stop accepting new deposits in this stablecoin. However, users will retain the ability to sell USDT or withdraw funds to external wallets until August 31.
After this date, all remaining USDT balances in accounts will be automatically converted to fiat currencies at the current market rate. This approach ensures that no client loses funds, but may lead to undesirable tax consequences for those who fail to withdraw their assets in advance.
Why this matters
Revolut, as one of Europe's largest neobanks with tens of millions of users, sets trends in digital finance. The exclusion of USDT signals growing regulatory pressure on stablecoins that do not meet new transparency and reserve standards, particularly under the upcoming MiCA regulation in the European Union.
My analysis: Revolut's decision is not an isolated case but part of a broader trend to push USDT out of regulated financial ecosystems. Users holding significant amounts in this stablecoin should consider alternatives in advance, such as USDC or DAI, which have a higher level of regulatory compliance. Ignoring these changes could lead to forced asset conversion at an unfavorable time.