Europe Seeks Regulated USD Tokens Amid Euro Strength

European stablecoin issuers are pushing for regulated US dollar tokens, arguing that the euro's growing strength is not enough to satisfy businesses' demand for dollar liquidity.

AllUnity, a German stablecoin issuer, launched its USD-pegged stablecoin USDAU on Wednesday, expanding its MiCA-regulated lineup beyond European currencies. According to AllUnity CEO Alexander Höptner, 'the US dollar is the glue' in global trade and FX markets.

Stable Mint's James Bennett noted that demand for dollar stablecoins in Europe reflects practical business needs rather than something policymakers can steer toward the euro. The company's USDSM stablecoin has moved over $380 million onchain across 3.8 million transfers, held by more than 2,600 addresses.

The push into dollar stablecoins comes as the EU reviews its MiCA framework and the ECB raises concerns about stablecoins reinforcing the dollar's global dominance. However, Societe Generale-FORGE argues that the goal should be a diversified market rather than opposition to dollar stablecoins.