EU Stablecoin Issuers Seek Regulated USD Tokens to Complement Euro Stablecoins
The European Union's stablecoin regulations are too narrow, according to issuers who are pushing for the creation of regulated US dollar tokens. These tokens are seen as a complement to, rather than a replacement for, euro-pegged offerings. The argument is that cross-border commerce still relies heavily on dollar liquidity, and that MiCA-compliant frameworks can address this demand without forcing a 'zero-sum' debate between euro and dollar stablecoins.
German issuer AllUnity has expanded its MiCA-regulated product range with the launch of the US dollar-pegged stablecoin USDAU. The company's CEO, Alexander Höptner, said that the dollar functions as a 'glue' currency across international markets, particularly for payments and FX execution. He argued that offering only a euro stablecoin is not enough for European corporates that need to move value globally.
Other European issuers, such as Stable Mint and Fiat Republic, have echoed the same theme, saying that dollar stablecoin usage is anchored in transactional and settlement demand. They argue that policymakers and regulators can influence who provides dollar tokens and under which rules, but not remove the underlying need for dollar liquidity in cross-border operations.
Despite the renewed focus on regulated dollar tokens, European-issued dollar stablecoins remain far smaller than the dominant USD stablecoins used globally. CoinGecko data places USDSM and USDCV at roughly $13 million each, compared with about $184 billion for USDT and $74 billion for USDC.
The next test for Europe's regulated dollar issuers will be whether they can scale adoption beyond early holders and a niche of settlement-focused users. This will be crucial in a market where USDT and USDC already command most of the liquidity.