European Stablecoin Issuers Push for Regulated US Dollar Tokens

European stablecoin issuers are pushing for regulated US dollar tokens, citing the need for dollar liquidity in global trade and FX markets. AllUnity, a German stablecoin issuer, launched its US dollar-pegged stablecoin USDAU on Wednesday, expanding its MiCA-regulated lineup beyond European currencies. The CEO of AllUnity, Alexander Höptner, said, “For European corporates to make cross-border payments globally, offering only a euro stablecoin isn’t enough.”

The demand for dollar stablecoins in Europe is driven by practical business needs, according to James Bennett, CEO of Stable Mint. His company's USDSM stablecoin has moved more than $380 million onchain across 3.8 million transfers and is held by more than 2,600 addresses. Bennett said, “Dollar stablecoins are where the demand is, and Europe can’t wish that away.”

Other issuers, such as Fiat Republic and Societe Generale-FORGE, are also entering the market. They argue that a regulated dollar token can reduce friction in cross-border settlement between Europe, the UK, and North America. Societe Generale-FORGE's USD CoinVertible (USDCV) has attracted interest for trading, settlement, collateral management, and treasury operations.

Despite growing interest, Europe-issued dollar stablecoins remain tiny compared with Tether USDt ($USDT) and Circle’s $USDC. CoinGecko puts USDSM and USDCV at about $13 million each, versus $184 billion for $USDT and $74 billion for $USDC.