European Stablecoin Issuers Advocate for Regulated US Dollar Tokens Amid Euro Strengthening
European stablecoin issuers emphasize the necessity of regulated US dollar-pegged tokens, despite the European Union’s efforts to strengthen the euro’s global role. They argue that businesses in Europe require the US dollar for cross-border payments and liquidity, making a euro-only stablecoin offering insufficient. In this context, German issuer AllUnity launched the USDAU stablecoin, regulated under MiCA, extending its suite beyond European currencies.
German Issuer AllUnity Launches US Dollar-Pegged Stablecoin
In mid-May 2024, German-based AllUnity expanded its MiCA-regulated stablecoin portfolio by launching USDAU, a token pegged to the US dollar. CEO Alexander Höptner highlighted the US dollar's central role in global trade and foreign exchange markets, emphasizing that European corporations need more than a euro stablecoin to effectively conduct cross-border payments worldwide.
Demand for US Dollar Stablecoins in Europe Driven by Practical Business Needs
Stable Mint CEO James Bennett stated that the European demand for US dollar stablecoins reflects real operational needs rather than regulatory steering toward the euro. He noted Europe cannot ignore this demand but can regulate who issues these tokens and under which frameworks. Stable Mint's USDSM token has reportedly moved over $380 million across some 3.8 million onchain transfers and is held by more than 2,600 wallets.
US Dollar Tokens Sought for 24/7 Settlements and Cross-Regional Transactions
Adam Bialy, CEO of Fiat Republic, pointed out strong interest from crypto platforms and stablecoin issuers for round-the-clock dollar settlements. He stressed that the demand is driven by practical transactional needs rather than speculation. A regulated US dollar token can reduce frictions in cross-border settlements among Europe, the UK, and North America, enhancing efficiency and speed.
A Diversified Stablecoin Ecosystem Over Euro-Dollar Opposition
Representatives from Societe Generale-FORGE, the digital asset arm of the French banking group Societe Generale, advocate for fostering a diversified and resilient market where users have access to both euro and dollar-denominated digital cash within a robust regulatory framework. A spokesperson stated the goal is not to oppose dollar stablecoins but to build strong infrastructure. Their USD CoinVertible (USDCV), launched in 2025, attracts attention for trading, settlement, collateral management, and treasury functions.
Europe-Issued Dollar Stablecoins Remain Small Compared to Global Giants
Despite increasing interest, Europe-issued US dollar stablecoins remain minuscule compared with industry leaders Tether USDt and Circle USDC. CoinGecko data shows USDSM and USDCV at around $13 million each, whereas USDT and USDC boast market caps of $184 billion and $74 billion respectively. Alexander Höptner framed the market as an opportunity to build interoperable financial infrastructure connecting dollar liquidity with European banking and business sectors, rather than a contest between the US and Europe.
Why it matters
This news highlights that despite the European Union's regulatory and policy efforts to strengthen the euro and oversee the stablecoin market, the US dollar remains vital for business operations and international payments across Europe. The demand for US dollar stablecoins stems from real operational needs of corporations and crypto platforms seeking efficient, regulated tools for continuous, fast settlement. The emergence of new EU-regulated US dollar tokens under the MiCA framework signals attempts to foster competition against global giants like Tether and Circle while mitigating their dominance. Balancing euro support with ensuring dollar liquidity is crucial for developing a more diversified and resilient digital financial ecosystem within Europe.
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