European stablecoin issuers are suing for regulated US dollar tokens, arguing that European pressure to strengthen the euro does not eliminate businesses’ need for dollar liquidity.
AllUnity, a German stablecoin issuer, launched its US dollar-pegged stablecoin USDAU on Wednesday, expanding its MiCA-controlled lineup beyond European currencies.
“In global trade and FX markets, the US dollar is sticky,” AllUnity CEO Alexander Höptner told Cointelegraph, adding: “For European corporates to make global cross-border payments, just offering a euro stablecoin is not enough.”
European issuers’ push into dollar stablecoins comes as the EU reviews its MICA framework and the ECB continues to raise concerns about stablecoins strengthening the dollar’s global dominance.
Europe cannot “eliminate” demand for the dollar
James Bennett, chief executive officer of Stable Mint, said demand for dollar stable coins in Europe reflects practical business demand rather than something policymakers might shift to the euro.
“Dollar stablecoins are where the demand is, and Europe can’t wish for that,” Bennett told Cointelegraph. “What Europe can control is who gives them to European users and under what rules.”
Stable Mint’s USDSM stablecoin has moved $380 million 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.
Related: CIRCLE calls for EU to revise stablecoin reserve rules in MICA review
Fiat Republic CEO Adam Bialy pointed to demands for round-the-clock dollar settlement from crypto platforms and stablecoin companies alike.
“The demand we’re seeing is driven by actual demand, not speculation,” Bialy told Cointelegraph, adding that a regulated dollar token could reduce friction in cross-border settlements between Europe, the UK and North America.
Not “euro vs dollar”.
Societe Generale-FORGE (SG-Forge), the digital asset subsidiary of French banking group Societe Generale, said the goal should be a diversified market rather than antagonizing dollar stablecoins.
“We believe the objective is not to oppose dollar stablecoins, but to build a diverse and resilient ecosystem where users can access both euro- and dollar-denominated digital cash solutions within a strong regulatory framework,” a company spokesperson told Cointelegraph.
Related: The ECB launched Pontes to settle tokenized assets without stablecoins
SG-FORGE said its USD CoinVertible (USDCV), which launches in 2025, has attracted interest for trading, settlement, collateral management and treasury operations.
Despite growing interest, dollar-denominated stablecoins issued from Europe remain tiny compared to Tether USDT (USDT) and Circle USDC. CoinGecko keeps About $13 million each for USDSM and USDCV, $184 billion for USDT and $74 billion for USDC.
AllUnity’s Höptner framed the market similarly, saying the opportunity is “not ‘US vs. Europe'” but building interoperable financial infrastructure connecting dollar liquidity to European banks and businesses.
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