Euro stablecoins dominate non-dollar market with 80% share

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Euro stablecoins dominate non-dollar market

EURC becomes a key settlement instrument

Circle is strengthening its position through EURC, which has already surpassed $506 million in supply. The token is widely used in payments, transfers, and corporate settlements. Excluding EURC, around 80% of euro stablecoin activity is tied to real financial operations. This includes salaries, treasury operations, and cross-border payments.

This distinguishes the segment from speculative crypto assets. An additional driver has been EURC’s integration with Visa and Mastercard payment networks. This expands its use within traditional financial infrastructure. As a result, euro stablecoins are beginning to move beyond the crypto ecosystem.

MiCA regulation becomes a key growth driver

The main factor behind the growth of euro stablecoins has been regulatory clarity in the EU. The MiCA framework, which came into force in December 2024, established clear rules for the market. This reduced risks for companies and institutional participants. According to Coin Bureau CEO Nic Puckrin, businesses are increasingly adopting stablecoins.

This is especially relevant for companies operating in euros. At the same time, delays in launching a digital euro give private players a window of opportunity. Circle is actively promoting EURC and USDC for 24/7 currency operations. This increases competition with the traditional banking system.

The dollar dominates, but Europe is building its niche

Despite the growth, euro stablecoins remain a small part of the overall market. The total stablecoin market is estimated at $300–316 billion, with the dollar holding a dominant share. While the euro accounts for around 20% of global currency reserves, its share in crypto remains minimal. This highlights a structural gap between traditional finance and the crypto market.

Scaling requires infrastructure that is convenient for banks and payment providers. Experts note that the key factor will be the development of solutions for corporate settlements. The winners will be companies that can offer fast, regulated transfers with low costs. If this barrier is overcome, the euro’s share in digital assets could grow much faster.

Recently we wrote that the European Central Bank stated that the growing popularity of stablecoins could reduce bank deposits and weaken lending activity. In its working paper “Stablecoins and Monetary Policy Transmission,” the regulator notes that the shift of funds into digital assets is already associated with a measurable decline in retail deposits.

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