Euro Stablecoins Surge by $263 Million, Dominating Market with 54% Growth
Recent reports reveal a significant increase in euro stablecoins, while US dollar stablecoin supply declines; banks play a pivotal role in this growth.
A recent study conducted by DIA has shed light on the dynamic world of stablecoins, particularly focusing on the euro-based market. The latest findings indicate a remarkable increase in euro stablecoins, which gained $263 million over the past year, marking a substantial 54% rise. In contrast, the supply of dollar-backed stablecoins saw a slight decrease of 1.3%.
Growth Trends in the Euro Stablecoin Market
As of mid-October 2026, the total market for euro stablecoins reached $790 million, positioning the euro as the largest non-dollar stablecoin market. Notably, banks are becoming increasingly involved in this sector, currently issuing 29% of euro stablecoins.
Key Players in the Euro Stablecoin Space
Among the key contributors, SG-FORGE's EURCV and Banking Circle's EURI together account for a significant portion of the euro stablecoin supply. EURCV has shown impressive growth, increasing by 2.5 times since March. Additionally, Crédit Agricole has entered the market with its own stablecoin, EURXT, launched in July.
Moreover, a consortium of 37 banks, known as Qivalis, received their Dutch e-money license on October 14 and is expected to start issuing stablecoins soon. The European Central Bank also took a significant step forward, launching its Pontes platform on September 21 to facilitate the settlement of tokenized assets in central bank money.
On-Chain Spending and the Rise in Adoption
Another notable highlight from the study involves on-chain spending using euro stablecoins. In the twelve months leading up to September, euro stablecoin card expenditures amounted to an impressive $459 million, which is over five times greater than the previous year. Circle's EURC dominated this market, representing 80% of the total spending, with Monerium's EURe making up the remainder.
This spending figure represents 8.5% of all traceable on-chain stablecoin card transactions, significantly higher compared to the euro's mere 0.26% share of the stablecoin supply.
DeFi Engagement for Euro Stablecoins
The usage of euro stablecoins extends beyond card transactions into decentralized finance (DeFi) applications. About 35% of the euro stablecoin supply is currently utilized in DeFi, a stark contrast to the 2.7% seen in USDT. The Morpho vault curated by Steakhouse has proven particularly beneficial, holding the majority of EURCV. Without this vault, the euro's share in DeFi would align more closely with USDC's level of 12.9%.
Currently, the total euro lending markets are valued at approximately €130 million, with around 72% of this amount borrowed. In light of recent regulatory developments, the European Securities and Markets Authority (ESMA) has advised licensed firms to recline custody and transfer services for non-compliant stablecoins, including USDT, by the beginning of 2027.
Regulatory Framework and MiCA Compliance
The European Union's Markets in Crypto-Assets (MiCA) regulation plays a crucial role in shaping the future of euro stablecoins. Under this regulation, stablecoin issuers must maintain full reserves and ensure redemption at par value. As of now, entities licensed under MiCA represent 98% of the euro stablecoin supply, a significant leap from just 27% in December 2023. Consequently, the unlicensed coins have diminished drastically, shrinking from €195 million to approximately €12 million.
Understanding the Landscape of Stablecoins
Zygis Marazas, the Head of Product at DIA, emphasized the complexity of stablecoins, noting that different stablecoins representing the same currency can serve varied purposes and come with distinct risks. He highlighted that the design of a stablecoin must align with its operational framework, target customer base, and specific market conditions.
The evolving landscape of euro stablecoins illustrates not only their growth but also the vital role of regulatory frameworks like MiCA in ensuring stability and compliance in this burgeoning sector.
To explore more insights and detailed data on various stablecoins, readers can access DIA's Global Stablecoin Map, which provides comprehensive statistics and analysis.