EU Stablecoin Issuers Push for USD Tokens, Say Euro Alone Isn’t Enough

USD tokens — European stablecoin issuers are advocating for regulated US dollar tokens, arguing that the euro alone cannot meet the demands of global business and that Europe cannot ignore the need for dollar liquidity.

German issuer AllUnity launched its MiCA-regulated USDAU stablecoin on Wednesday, with CEO Alexander Höptner stating that for European corporates making global payments, “offering only a euro stablecoin isn’t enough.” The push comes as the EU reviews its Markets in Crypto-Assets (MiCA) framework and the European Central Bank expresses concerns about stablecoins reinforcing the dollar’s dominance.

Stable Mint CEO James Bennett emphasized that demand for dollar stablecoins reflects practical business needs, noting “Europe can’t wish that away.” His firm’s USDSM token has processed over $380 million across 3.8 million transfers. Similarly, Fiat Republic’s Adam Bialy pointed to demand from crypto platforms needing 24/7 dollar settlement, calling it a practical need, not speculation.

Despite the push, Europe-issued dollar stablecoins remain a tiny fraction of the market. CoinGecko data shows Stable Mint’s USDSM and Societe Generale-FORGE’s USDCV each have a market cap of around $13 million, compared to $184 billion for Tether’s USDT and $74 billion for Circle’s USDC.