Key facts
- European stablecoin issuers are advocating for regulated US dollar tokens.
- AllUnity launched its US dollar-pegged stablecoin USDAU, expanding its MiCA-regulated offerings.
- AllUnity CEO Alexander Höptner stated that offering only a euro stablecoin is insufficient for global cross-border payments.
- Stable Mint CEO James Bennett noted that demand for dollar stablecoins reflects practical business needs.
- Stable Mint's USDSM stablecoin has facilitated over $380 million in transactions.
- Societe Generale-FORGE (SG-Forge) aims for a diversified digital asset ecosystem, not opposition to dollar stablecoins.
European stablecoin issuers are advocating for the regulated issuance of US dollar-pegged tokens, asserting that businesses' practical needs for dollar liquidity in global trade and payments cannot be ignored, despite the European Union's focus on strengthening the euro. AllUnity, a German issuer, launched its US dollar-pegged stablecoin USDAU on Wednesday, expanding its offerings under the MiCA framework.
AllUnity CEO Alexander Höptner stated that the US dollar is essential for global trade and FX markets, and that a euro-only stablecoin is insufficient for European corporates making cross-border payments. This push comes as the EU reviews its Markets in Crypto-Assets (MiCA) regulation and the European Central Bank expresses concerns about stablecoins reinforcing dollar dominance.
Stable Mint CEO James Bennett echoed this sentiment, arguing that demand for dollar stablecoins is driven by real business needs and cannot be dismissed by policymakers. He emphasized that Europe can control who issues these tokens and under what rules. Stable Mint's USDSM stablecoin has recorded over $380 million in onchain volume across 3.8 million transfers, held by more than 2,600 addresses.
Adam Bialy, CEO of Fiat Republic, highlighted demand from crypto platforms and stablecoin companies for 24/7 dollar settlement, noting that regulated dollar tokens can reduce friction in cross-border transactions between Europe, the UK, and North America. Societe Generale-FORGE (SG-Forge), the digital asset arm of French banking group Societe Generale, believes the objective should be a diversified market rather than opposition to dollar stablecoins, aiming to provide both euro and dollar-denominated digital cash solutions within a robust regulatory framework. SG-FORGE's USD CoinVertible (USDCV) has seen interest for trading, settlement, collateral management, and treasury operations.
Despite this growing interest, European-issued dollar stablecoins are significantly smaller than established players like Tether USDt (USDT) and Circle's USDC. CoinGecko data shows USDSM and USDCV each valued at approximately $13 million, compared to USDT's $184 billion and USDC's $74 billion.