European issuers argue for USD tokens to complement euro stablecoins

Europe has spent years building a rulebook for stablecoins. Now some of the companies operating under it are making an awkward case: the continent also needs dollar tokens, not just euro ones.

European issuers say demand for dollar stablecoins is too large to ignore. Businesses want USD liquidity for global payments and settlement, and these issuers would rather supply it from inside the EU’s regulatory perimeter than watch it flow offshore.

The numbers behind the pitch

The scale gap is hard to overstate. Euro stablecoin supply stood at approximately €794 million (~$900 million) on September 23, 2026.

Dollar stablecoins, by comparison, were worth more than $311 billion. Over 99% of the stablecoin market is pegged to the US dollar.

Within the euro segment, two names carry most of the weight. Circle’s EURC has a supply of around €460 million, while Société Générale Forge’s EURCV sits at approximately €190 million.

Several of the same players are now leaning into dollars. Circle issues USDC alongside EURC, and SG-Forge has added newly issued dollar tokens next to EURCV.

AllUnity launched its USD-pegged USDAU token around September 30, 2026. Paxos offers USDG, another dollar token positioned for the regulated market.

Each of these issuers frames its dollar product as an addition to euro options, not a rival. The message is consistent: euro tokens serve European needs, while dollar tokens keep European firms competitive in global markets that already run on USD.

How MiCA shapes the playing field

All of this happens under the EU’s Markets in Crypto-Assets framework, known as MiCA. The regime took effect in 2024 and created a licensing system for stablecoin issuers.

Under MiCA, fiat-backed stablecoins are classified as e-money tokens, or EMTs. Issuers must hold 1:1 reserves, largely in cash or cash equivalents at EU institutions.

As of early October 2026, 25 companies were authorized as MiCA e-money token issuers across the EU.

This is the core of the issuers’ argument. A dollar token issued under MiCA gives European supervisors visibility over the reserves backing it, something they lose when users hold offshore dollar stablecoins outside EU oversight.

Why Europe is having this debate now

Dollar liquidity remains the foundation of international trade, cross-border payments, and decentralized finance, where most on-chain activity is quoted and settled in USD-pegged tokens.

European businesses that trade globally do not get to choose the currency of their counterparties. If a supplier in Asia or a trading desk in New York wants dollars, the European firm needs dollars too.

The issuers’ position is pragmatic. If that demand will be met regardless, they argue it is better met by regulated European entities holding reserves at EU institutions than by less regulated alternatives elsewhere.

What this means for the market

The competitive landscape is also getting crowded. A bank-backed issuer like SG-Forge, a crypto-native firm like Circle, and newer entrants like AllUnity and Paxos are now chasing overlapping customers.

The policy question is thornier. Supporters frame MiCA dollar tokens as a way to keep reserves and oversight inside Europe while serving real commercial demand.

Skeptics of dollar dominance could read the same trend differently. Every regulated USD token issued in Europe arguably deepens the continent’s reliance on a currency it does not control, even as euro tokens remain a small slice of the market.