EU stablecoin issuers argue Europe needs regulated US dollar tokens

European firms expand beyond euro into dollar stablecoins

Several European stablecoin issuers launched or highlighted US dollar-pegged tokens this week, arguing that euro-only digital currency options do not meet the needs of businesses making global payments. A stablecoin is a cryptocurrency pegged to a fiat currency, designed to hold a steady value.

AllUnity, a German company, launched its USDAU stablecoin on Wednesday under the EU's Markets in Crypto-Assets regulation, known as MiCA. Societe Generale-FORGE, the digital asset arm of French bank Societe Generale, pointed to its USD CoinVertible (USDCV), which launched in 2025. Stable Mint and Fiat Republic also voiced support for regulated dollar tokens.

Why European issuers say the dollar matters

• AllUnity CEO Alexander Höptner said the US dollar is "the glue" of global trade and FX markets, and that offering only a euro stablecoin is insufficient for cross-border payments.
• Stable Mint CEO James Bennett said demand for dollar stablecoins reflects practical business needs that policymakers cannot simply redirect toward the euro.
• Fiat Republic CEO Adam Bialy described the demand as driven by crypto platforms and companies seeking round-the-clock dollar settlement.
• Societe Generale-FORGE said the goal should be a diversified market where users can access both euro and dollar digital cash solutions.

Market size remains small compared to US giants

Despite the push from European issuers, their dollar stablecoins remain far smaller than the dominant players. According to CoinGecko data cited in the report, USDSM and USDCV each have a market capitalization of about $13 million. By comparison, Tether's USDT stands at roughly $184 billion and Circle's USDC at about $74 billion.

Stable Mint reported that its USDSM stablecoin has moved more than $380 million onchain across 3.8 million transfers and is held by over 2,600 addresses as of Wednesday.

Regulatory context in the EU

The European Union is currently reviewing its MiCA framework, and the European Central Bank has raised concerns about stablecoins reinforcing the dollar's global dominance. Meanwhile, Circle has urged the EU to revise stablecoin reserve rules during the MiCA review. SG-FORGE also noted the ECB's recent launch of Pontes, a system to settle tokenized assets without stablecoins, as part of the broader regulatory landscape.

What is clear

European stablecoin issuers have launched or promoted dollar-pegged tokens under EU regulation. They argue that global businesses need dollar liquidity for international payments and settlement. These tokens remain tiny compared to USDT and USDC. The EU is reviewing MiCA rules, and the ECB has expressed concerns about dollar dominance.

Why this matters

If European issuers are correct that businesses need regulated dollar tokens, it could shape how the EU's crypto framework evolves. Höptner described the opportunity as building interoperable financial infrastructure that connects dollar liquidity with European banks and businesses, rather than framing it as a choice between the dollar and the euro.

Source

• Cointelegraph