European stablecoin issuers are making a stronger case for regulated U.S. dollar-backed tokens, arguing that Europe cannot ignore business demand for dollar liquidity.
While European policymakers continue to promote the euro, companies involved in global trade, payments and settlement still rely heavily on the U.S. dollar.
European Firms Expand Into Dollar Stablecoins
German stablecoin issuer AllUnity recently launched USDAU, a U.S. dollar-pegged stablecoin.
The launch expands the company’s MiCA-regulated product range beyond euro-denominated digital assets.
AllUnity CEO Alexander Höptner said the U.S. dollar remains central to global trade and foreign exchange markets.
He argued that euro-only stablecoin offerings may not be enough for European companies making international payments.
Dollar Liquidity Remains Important in Global Trade
European businesses often need access to dollar liquidity for cross-border transactions, treasury operations and settlement.
That demand remains strong despite efforts by European regulators and institutions to strengthen the international role of the euro.
The debate comes as the European Union reviews parts of its Markets in Crypto-Assets, or MiCA, framework.
At the same time, the European Central Bank has repeatedly raised concerns that widespread use of dollar-backed stablecoins could reinforce the dollar’s global dominance.
Stablecoin Issuers Say Dollar Demand Cannot Be Ignored
Stable Mint CEO James Bennett argued that demand for dollar stablecoins reflects practical market needs.
He said European policymakers may not be able to redirect that demand simply by encouraging greater use of euro-denominated tokens.
Instead, Europe may have more influence over which companies are allowed to issue dollar stablecoins and what regulatory standards they must follow.
Stable Mint’s USDSM token has already processed more than $380 million in onchain transactions across roughly 3.8 million transfers.
The token is also held by more than 2,600 blockchain addresses, according to figures provided by the company.
Crypto Firms Seek 24/7 Dollar Settlement
Fiat Republic CEO Adam Bialy also pointed to growing demand from crypto platforms and stablecoin companies.
These businesses often require access to round-the-clock U.S. dollar settlement.
A regulated dollar stablecoin could reduce friction in cross-border transactions between Europe, the United Kingdom and North America.
The demand, according to Bialy, is driven more by operational needs than by speculation.
Europe Seeks a More Diversified Stablecoin Market
Societe Generale-FORGE, the digital asset division of French banking group Societe Generale, said the debate should not be framed as a competition between the euro and the U.S. dollar.
The company supports a more diversified digital asset ecosystem.
Under this model, businesses and investors could access both euro- and dollar-denominated digital cash within a regulated framework.
Dollar Stablecoins Support Trading and Treasury Operations
Societe Generale-FORGE launched its USD CoinVertible stablecoin, known as USDCV, in 2025.
The company said the token has attracted interest for several use cases.
These include trading, settlement, collateral management and corporate treasury operations.
Such applications highlight the broader role that regulated stablecoins could play in institutional finance.
European Dollar Stablecoins Remain Small
Despite growing interest, European-issued dollar stablecoins remain tiny compared with the largest global tokens.
USDSM and USDCV each have a market capitalization of roughly $13 million.
By comparison, Tether’s USDT has a market value of about $184 billion, while Circle’s USDC is valued at approximately $74 billion.
The gap shows how dominant established U.S. dollar stablecoins remain in the global crypto market.
The Debate Is About Infrastructure, Not Currency Rivalry
European issuers argue that the issue should not be viewed as the U.S. dollar competing directly against the euro.
Instead, they see an opportunity to build interoperable financial infrastructure connecting European banks and businesses with global dollar liquidity.
For European companies operating internationally, access to both euro and dollar stablecoins could provide more flexibility for payments, settlement and treasury management.
As MiCA continues to evolve, the balance between supporting euro-denominated digital assets and meeting real-world demand for dollar stablecoins is likely to remain an important regulatory issue.
