EU Stablecoin Issuers Make Case for Dollar Tokens to Compete Globally

European issuers of stablecoins are pushing for the creation of USD tokens to complement euro stablecoins, arguing that demand from businesses is too large to ignore. The issuers claim that European companies need dollar liquidity for global payments and settlement, and it's better met by regulated European entities holding reserves at EU institutions rather than less regulated alternatives offshore.

The numbers behind the pitch are stark: while euro stablecoin supply stood at approximately €794 million (~$900 million) on September 23, 2026, dollar stablecoins were worth more than $311 billion. Over 99% of the stablecoin market is pegged to the US dollar.

Circle issues both EURC and USDC, while Société Générale Forge has added USD tokens alongside EURCV. AllUnity launched its USD-pegged USDAU token around September 30, 2026, and Paxos offers USDG, another dollar token positioned for the regulated market.

The issuers frame their dollar products as additions to euro options, not rivals. They argue that euro tokens serve European needs, while dollar tokens keep European firms competitive in global markets that already run on USD.

Under the EU's Markets in Crypto-Assets framework (MiCA), fiat-backed stablecoins are classified as e-money tokens, or EMTs. Issuers must hold 1:1 reserves, largely in cash or cash equivalents at EU institutions.