European stablecoin issuers are pushing back against the idea that the continent only needs euro-pegged digital money, arguing that businesses still need regulated US dollar tokens — and that pretending otherwise just pushes dollar demand overseas.
By Priya Sharma | October 3, 2026
The Hook: A German Issuer Just Broke Ranks
The debate landed in the spotlight this week when AllUnity, a German stablecoin issuer, launched a US dollar-pegged stablecoin called USDAU on Wednesday, expanding its MiCA-regulated lineup beyond European currencies. In other words, a company operating fully under Europe’s own strict rulebook decided its customers also needed digital dollars — not just digital euros.
“In global trade and FX markets, the US dollar is the glue,” AllUnity CEO Alexander Höptner told Cointelegraph. “For European corporates to make cross-border payments globally, offering only a euro stablecoin isn’t enough.”
The timing is delicate. The EU is currently reviewing its MiCA framework — the rulebook that governs crypto in Europe — while the European Central Bank keeps raising concerns that stablecoins reinforce the dollar’s global dominance. Issuers are essentially telling Brussels: the demand exists whether you like it or not, so the question is who gets to serve it.
The Numbers Behind the Argument
Stable Mint, another European issuer, put concrete figures on the demand. Its USDSM stablecoin has moved more than 380 million USD onchain across 3.8 million transfers and is held by more than 2,600 addresses, according to figures provided by the company as of Wednesday.
Those volumes are real but still small. According to CoinGecko data cited by Cointelegraph, Europe-issued dollar stablecoins remain tiny compared with the giants: USDSM and Societe Generale’s USDCV each sit at roughly 13 million USD in market value, versus about 184 billion USD for Tether’s USDT and 74 billion USD for Circle’s USDC. To visualize it: for every dollar held in a European-issued USD token, there are roughly ten thousand dollars held in USDT.
- USDAU — AllUnity’s new dollar stablecoin, launched Wednesday under MiCA rules.
- USDSM — Stable Mint’s dollar token: over 380 million USD moved onchain, 3.8 million transfers, 2,600-plus holder addresses.
- USDCV — Societe Generale-FORGE’s USD CoinVertible, launched in 2025, roughly 13 million USD market value.
- The giants — USDT at about 184 billion USD and USDC at about 74 billion USD, per CoinGecko.
The Core Conflict: Policy Versus Practice
Stable Mint CEO James Bennett framed the issue in blunt terms. “Dollar stablecoins are where the demand is, and Europe can’t wish that away,” he told Cointelegraph. “What Europe can control is who issues them to European users, and under which rules.”
That is the heart of the argument: demand for dollar liquidity is a business reality, not a political preference. Fiat Republic CEO Adam Bialy pointed to crypto platforms and stablecoin companies seeking round-the-clock dollar settlement. “The demand we are seeing is driven by practical needs, not speculation,” Bialy said, noting that a regulated dollar token can reduce friction in cross-border settlement between Europe, the UK and North America.
Not everyone in the European camp sees dollars as a threat. Societe Generale-FORGE, the digital asset arm of the French banking group, said the goal should be a diversified market rather than opposition. “We believe 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. SG-FORGE added that its USDCV has attracted interest for trading, settlement, collateral management and treasury operations.
What This Means for Your Portfolio
Stablecoins are the plumbing of crypto — think of them as the checking accounts of the digital asset world. If European issuers can offer regulated dollar tokens, European businesses and crypto platforms get a compliant way to hold and move dollars around the clock, without relying on offshore issuers. That matters for anyone trading on European exchanges or using DeFi protocols, because better plumbing usually means faster settlement and fewer friction costs.
For yield-focused investors, the MiCA review is the story to watch. Circle has separately urged the EU to revise stablecoin reserve rules, and the outcome will determine how attractive it is to issue — and to hold — regulated stablecoins in Europe. A framework that welcomes both euro and dollar tokens could pull more of the stablecoin market onshore, with European banks and fintechs capturing business that currently flows to Tether and Circle.
The Verdict: Two Currencies, One Market
Höptner of AllUnity rejected the framing of a transatlantic battle, saying the opportunity is “not ‘US versus Europe'” but about building interoperable financial infrastructure that connects dollar liquidity with European banks and businesses. That is probably the realistic reading. The euro stablecoin has a future in European payments — but the dollar remains the world’s trading currency, and digital versions of it are not going away. Europe’s choice is not whether dollar stablecoins exist, but whether they exist under European rules. This week, its own issuers made that case as loudly as they could.
The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.
13 million in european issued dollar tokens vs 184 billion in USDT. that gap is the whole argument, you cannot regulate away demand for dollars
AllUnity being german and launching USDAU under MiCA basically admits it. If the european rulebook were enough they would have stuck to euros.
a ten thousand to one ratio is wild
10,000 to 1 and the ecb still frames this as a euro demand problem. the demand left, it didnt disappear
ten thousand to one and brussels is still debating. launching usdau is basically an admission the digital euro timeline lost the race
exactly, the ecb keeps treating the 10k to 1 ratio as a messaging problem. demand for dollar settlement is structural, usdau just gives it a legal home inside mica
13 million vs 184 billion isnt a gap its a rounding error. usdau is a nice signal but brussels moves at mica speed, tether moves at market speed
exactly. you cant regulate demand for dollar settlement, only where it gets satisfied. better it happens under mica supervision than entirely offshore
Every dollar Europe pushes offshore comes back as Tether market cap. AllUnity seems to get it, hopefully Brussels catches up eventually.
Hoeptner saying the quiet part out loud will cost AllUnity some goodwill in Brussels, but every corporate treasurer doing cross border payments knows he is right.
a mica regulated dollar token with european oversight is the weird combo nobody asked for but corporates will take anyway. redemption terms are the make or break
a german issuer operating fully under mica launching a dollar stablecoin tells you everything. the euro only crowd lost the argument before it started
höptner calling the dollar the glue of fx markets will not make him popular in brussels, but corporates settle in usd. pretending otherwise just pushed demand offshore
the glue line will earn him a hearing invitation, not a medal. but shes right, corporates settle in dollars and usdau at least keeps that flow visible to eu supervisors instead of offshore
13 million european dollar tokens versus 184 billion in tether, and brussels is debating whether europeans want dollars. the order book already voted
usdau under mica is actually interesting. finally a regulated dollar option that doesnt require a us bank account
regulated dollar option with european oversight, thats the angle usdc never had. curious about the redemption terms though
The redemption terms are the part to watch. MiCA forces proper reserves but a dollar token redeeming through a German entity still touches US banking hours somewhere in the chain.
the us banking hours point is real. tried settling a friday usd transfer through a euro entity once, sat until tuesday. redemption speed will decide if usdau is usable or just compliant
friday usd transfer through a euro entity sitting until tuesday is such a real pain. redemption speed is the whole product honestly
The redemption flow through a German entity is the part I would stress test. MiCA reserves are fine, but a Friday dollar redemption clearing Monday is where corporates walk away.
the german banking hours point is underrated. if usdau redemption still routes through eu banking windows the whole 24/7 pitch dies for corporate use. watching this one closely
13m of eu issued dollar tokens vs 184b usdt. brussels can debate all it wants, the market already voted. allunity just read the room before the ecb did
the 13m vs 184b comparison is brutal but every token starts at zero. the real signal is a licensed german issuer choosing dollars at all, that says more about demand than any brussels debate
redemption through a german entity is the test. one friday usd pull that sits until tuesday and every corporate treasurer goes straight back to tether