Europe’s stablecoin industry has a message for Brussels: the euro alone will not cut it. A growing chorus of European issuers is building regulated US dollar tokens, arguing that businesses on the continent need dollar liquidity whether policymakers like it or not.
By Priya Sharma | October 4, 2026
The Hook: Dollar Demand Europe Cannot Legislate Away
The debate over Europe’s crypto rulebook, known as MiCA, usually centers on protecting the euro. But inside the industry, a very different conversation is happening. European stablecoin issuers — the companies that issue digital tokens pegged to traditional currencies — are lining up to launch dollar-pegged stablecoins for European users, Cointelegraph reported on October 2.
The timing is deliberate. The European Union is currently reviewing its MiCA framework, and the European Central Bank has repeatedly warned that stablecoins could reinforce the dollar’s global dominance. Issuers say that is precisely the point: the dollar dominates global trade, and pretending otherwise just pushes European users toward offshore tokens with fewer protections.
The Evidence: What the Issuers Are Actually Building
The shift is already visible in the numbers. German issuer AllUnity launched its dollar-pegged stablecoin USDAU in the first week of October, expanding a MiCA-regulated lineup that previously covered European currencies. The company is backed by major German financial institutions and led by CEO Alexander Höptner, the former Börse Stuttgart boss.
- Stable Mint’s USDSM — has moved more than 380 million USD onchain across 3.8 million transfers, held by over 2,600 addresses (company figures, as of the first week of October)
- SG-Forge’s USDCV — the dollar token from Societe Generale’s digital asset arm, launched in 2025, is being used for trading, settlement, collateral and treasury operations
- Market gap — CoinGecko data puts USDSM and USDCV at roughly 13 million USD each in market value, versus about 184 billion USD for Tether’s USDT and 74 billion USD for Circle’s USDC
In plain terms: European-issued dollar stablecoins are a rounding error next to the giants. That gap is exactly what issuers are trying to close — under European rules rather than outside them.
The Core Conflict: Euro Ambition vs. Dollar Reality
Think of it like a shop refusing to stock a product customers keep asking for. European regulators want euro stablecoins to flourish so the euro stays relevant in digital finance. But businesses that trade oil, commodities or goods priced in dollars need dollar liquidity around the clock — including on weekends when banks are closed.
“In global trade and FX markets, the US dollar is the glue,” Höptner told Cointelegraph. “For European corporates to make cross-border payments globally, offering only a euro stablecoin isn’t enough.”
Stable Mint CEO James Bennett put it more bluntly: “Dollar stablecoins are where the demand is, and Europe can’t wish that away. What Europe can control is who issues them to European users, and under which rules.”
Adam Bialy, CEO of banking-API firm Fiat Republic, said the demand his company sees is “driven by practical needs, not speculation” — crypto platforms and stablecoin companies seeking round-the-clock dollar settlement between Europe, the UK and North America.
Market Implications: What This Means for Your Wallet
For regular investors and small businesses, the practical stakes are straightforward:
- More choice under EU rules — a MiCA-regulated dollar token means European users can hold dollar exposure without resorting to offshore issuers that may not meet local standards
- Cheaper cross-border payments — dollar stablecoins moving 24/7 can cut the friction and cost of settling with US counterparties, much like sending a message instead of mailing a letter
- Competitive pressure — if European dollar tokens grow, USDC and USDT face their first serious regulatory-grade competition inside the EU single market
There is also a subtler signal here. When banks and licensed fintechs build dollar rails despite official euro preferences, it usually means customer demand is strong enough to override politics. That kind of demand tends to persist — and it shapes where the industry invests next.
The Verdict: Coexistence, Not a Currency War
The most balanced view comes from SG-Forge, the Societe Generale subsidiary. “The objective is not to oppose dollar stablecoins, but to foster a diversified and resilient ecosystem where users can access both euro and dollar-denominated digital cash solutions within a robust regulatory framework,” a company spokesperson said.
Höptner framed it the same way: the opportunity is “not ‘US versus Europe'” but building financial plumbing that connects dollar liquidity with European banks and businesses.
For now, the numbers show how early this is — 13 million USD each for the leading European dollar tokens against a 258-billion-USD combined duopoly. But every major shift in finance starts small. If the MiCA review gives dollar tokens a clear lane in Europe, the continent’s users get something they have never had: regulated dollar digital cash, issued under their own laws. That is not a defeat for the euro agenda. It is an acknowledgment of how the world actually does business.
The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.
lmao imagine spending five years writing MiCA to protect the euro and issuers just launch dollar tokens anyway. demand doesnt care about your framework
^ exactly. the ECB can warn about dollar stablecoins all day, a German exporter hedging in usd could not care less
lmao five years of MiCA drafting and issuers just deploy dollar tokens inside the framework anyway. demand really does not read your legislation
Euro stablecoin volumes are a rounding error next to dollar pairs. Brussels can review MiCA all it wants, corporate treasuries still invoice in USD.
counterpoint to the rounding error take: the whole point of MiCA was to make euro rails usable so those volumes grow. you dont bootstrap demand by banning the alternative
watch them regulate this into the ground then act shocked when all the liquidity moves to dubai
half these issuers keep liquidity offshore anyway. brussels ends up with tidy rules and a dubai entity on the org chart, everyone wins except the ecb
dubai already won that race, vara licensed dollar tokens are live. question is whether the mica review makes europe competitive or just tidy
Dubai won the HQ race but MiCA at least buys passporting across 27 markets. Issuers want the EU customer base too much to fully walk away.
ofcourse they’re building dollar tokens. 380M already moved onchain for USDSM and the ECB still pretends euro stablecoins are the priority lol
agreed, and the 2,600 holders number is the real signal. people are actually holding the thing, its usage beyond market maker shuffling
380m onchain in a month is real but calling it demand is a stretch, half of it is market makers seeding order books
even if half the 380M is market makers, the remaining 190M is more than euro tokens moved all quarter. the direction is the data point, the exact split is noise
even if half the 380M is market makers, that still leaves 190M of real float. the corporate treasury wallets showing up next quarter is the number to watch
380M onchain and 2,600 holders are both early numbers. the real tell is when corporate treasury wallets start showing up in holder counts
380M moved in a few weeks with basically no incentive farm attached. that number is actual demand, not mercenary yield tourists
Höptner at least has the resume for this. Running Börse Stuttgart and now pushing USDAU under MiCA is a serious institutional signal, not some degen side project.
resume matters less than distribution. borse stuttgart gives access to german corporate treasuries, thats the actual unlock
The ECB warning about dollar dominance reads like a complaint the market already voted on. European businesses need dollar liquidity for trade, and MiCA cannot legislate that away.
the review will spend months arguing euro caps while issuers ship usd tokens under an e money license. technology always moves first in this town
The detail nobody mentions: most of these dollar tokens will still be issued by EU-licensed entities. Brussels loses the currency argument but keeps the licensing revenue.
2,600 holders after a few weeks with no farm attached is the number that should scare the euro cap people. nobody friction joined this thing
brussels spending its review on protecting the euro while issuers pre build dollar rails is five years of mica theater in one headline. exporters invoice in usd
Exactly. A Mittelstand exporter quoting usd contracts cannot hedge with a euro token nobody on the receiving end accepts. The use case writes itself.
e money licensed dollar tokens while brussels reviews euro caps is such a classic move. the rules get written, the workarounds ship first