‘Euro stablecoin isn’t enough’: EU issuers make case for USD tokens

European stablecoin issuers are making the case for regulated US dollar tokens, arguing that Europe’s push 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-regulated lineup beyond European currencies.

“In global trade and FX markets, the US dollar is the glue,” AllUnity CEO Alexander Höptner told Cointelegraph, adding: “For European corporates to make cross-border payments globally, offering only a euro stablecoin isn’t enough.”

European issuers’ push into dollar stablecoins comes as the EU reviews its MiCA framework and the ECB continues to raise concerns about stablecoins reinforcing the dollar’s global dominance.

Europe cannot “wish away” dollar demand

Stable Mint CEO James Bennett said demand for dollar stablecoins in Europe reflects practical business needs rather than something policymakers can simply steer toward the euro.

“Dollar stablecoins are where the demand is, and Europe can’t wish that away,” Bennett told Cointelegraph. “What Europe can control is who issues them to European users, and under which rules.”

Stable Mint’s USDSM stablecoin has moved more than $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.