Key Points:
- European stablecoin issuers argue that businesses still require US dollar liquidity for international payments, trading and settlement despite efforts to strengthen the euro.
- AllUnity launched its MiCA-regulated US dollar stablecoin USDAU, while other European issuers are also developing dollar-denominated tokens.
- European-issued dollar stablecoins remain small compared with USDT and USDC, highlighting the gap between regional regulatory development and existing market scale.
European stablecoin issuers are increasingly turning toward US dollar-denominated tokens, arguing that the euro alone cannot satisfy the liquidity requirements of companies operating across global markets.
The shift comes as the European Union continues developing its digital asset regulatory framework and policymakers debate the potential impact of dollar-backed stablecoins on the euro’s international role.
AllUnity, a German stablecoin issuer, launched its US dollar-pegged USDAU stablecoin on Wednesday, expanding its MiCA-regulated offering beyond euro-denominated assets.
Dollar Liquidity Remains Central to Global Trade
AllUnity CEO Alexander Höptner said the US dollar remains deeply embedded in global trade and foreign-exchange markets, making dollar-based digital liquidity relevant for European companies conducting international business.
“For European corporates to make cross-border payments globally, offering only a euro stablecoin isn’t enough,” Höptner said.
The argument reflects the practical role of the dollar in international settlement. European businesses may operate under euro-based regulatory and financial systems while still conducting transactions involving US dollar-denominated goods, services, assets and counterparties.
Issuers See Demand Beyond Speculation
Stable Mint CEO James Bennett similarly argued that demand for dollar stablecoins in Europe reflects existing commercial requirements rather than simply speculative cryptocurrency activity.
Stable Mint’s USDSM stablecoin had processed more than $380 million in onchain transfers across 3.8 million transactions and was held by more than 2,600 addresses as of Wednesday, according to figures supplied by the company.
Bennett said European policymakers can determine which companies issue dollar stablecoins to European users and the regulatory requirements those issuers must meet, even if they cannot eliminate demand for dollar liquidity.
Fiat Republic CEO Adam Bialy also pointed to demand from cryptocurrency platforms and stablecoin businesses that require continuous access to dollar settlement.
He said regulated dollar tokens could reduce friction in cross-border settlement connecting Europe, the United Kingdom and North America.
Issuers Reject a Simple Euro vs. Dollar Framework
Societe Generale-FORGE, the digital asset subsidiary of French banking group Societe Generale, framed the issue as a question of diversification rather than competition between currencies.
The company said the objective should be a resilient ecosystem in which users can access both euro- and dollar-denominated digital cash solutions under an established regulatory framework.
SG-FORGE’s USD CoinVertible, or USDCV, launched in 2025 and has attracted interest for trading, settlement, collateral management and treasury operations, according to the company.
The approach suggests that European financial institutions can support euro-based digital money while also providing regulated access to dollar liquidity through tokenized forms of cash.
European Dollar Stablecoins Remain Small
Despite the growing interest, European-issued dollar stablecoins remain tiny compared with the largest dollar stablecoins in the global market.
CoinGecko data cited in the source material puts the market capitalizations of USDSM and USDCV at approximately $13 million each. By comparison, Tether’s USDT stood at about $184 billion and Circle’s USDC at approximately $74 billion.
The disparity highlights the scale challenge facing European issuers. Regulation can establish the conditions under which stablecoins operate in the region, but adoption still depends on liquidity, distribution, exchange support and demand from businesses and users.
Building Interoperable Financial Infrastructure
AllUnity’s Höptner described the opportunity as broader than competition between the United States and Europe.
From this perspective, dollar and euro stablecoins can coexist within a broader payments infrastructure connecting international dollar liquidity with European banks and businesses.
For European issuers, regulated dollar tokens could therefore serve as an additional financial rail rather than replacing euro-denominated digital money.
Outlook
European stablecoin issuers are increasingly positioning regulated dollar tokens as a practical complement to euro stablecoins rather than a competing monetary system. The underlying argument is that European businesses participating in global commerce will continue to require access to dollar liquidity regardless of the EU’s efforts to strengthen the role of the euro in digital finance.
The significant market-capitalization gap between European-issued dollar tokens and established USDT and USDC also shows that the market remains in an early stage. The development of MiCA-compliant infrastructure could provide a foundation, but sustained adoption will depend on whether European dollar stablecoins can build sufficient liquidity and integration across global payments and financial markets.
Category: Blockchain
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