European Stablecoin Boom Trapped by Redemptions Loophole
The European stablecoin market has experienced growth since the implementation of the MiCA regulation in December 2024, reaching $912 million by the end of summer 2026. However, this growth is largely attributed to regulatory concentration rather than an increase in demand.
Circle's EURC holds around 41% to 50% of the total European stablecoin market share, a significant rise from its previous 17%. In contrast, Tether's USDT and Circle's USDC have market capitalizations exceeding $183 billion and $75 billion, respectively. This disparity highlights the disproportionate size of the dollar-stablecoin market compared to euro-stablecoins.
A joint venture between twenty-one banks and financial institutions aims to establish a new company for stablecoin issuance, with plans to launch in the first half of 2027. The initiative will focus on issuing dollar-denominated tokens, with an expansion to other G7 currencies including euros.