Europe's MiCA Issuers Say "USD Pease" As Dollar Stablecoins Gate-Crash The Euro Party 💶

AllUnity, a German stablecoin issuer regulated under the European Union's Markets in Crypto-Assets (MiCA) framework, launched its US dollar-pegged stablecoin USDAU on Wednesday, extending its token lineup beyond euro, Swiss franc and Swedish krona offerings. USDAU will maintain a 1:1 peg to the US dollar through segregated reserves and debut on Ethereum, Solana, Base, Tempo, Arc and Polygon, according to a Wednesday announcement shared with Cointelegraph. AllUnity already issues euro-backed EURAU, Swiss franc-backed CHFAU and Swedish krona-backed SEKAU stablecoins. CoinGecko data places EURAU's market capitalization at roughly $400,000 and CHFAU's at about $45 million.

The launch lands as US dollar-pegged tokens account for more than 99% of the roughly $291 billion global stablecoin market by capitalization, per CoinGecko, and as European policymakers debate the implications of that dominance. The European Central Bank warned in June that greater use in European tokenized finance could deepen dependence on the dollar and weaken the euro's role.

AllUnity CEO Alexander Höptner pushed back on the framing that the dollar itself is the central concern. "Europe's concern isn't with the dollar, it's with dollar liquidity flowing through offshore issuers with no European supervisor, no enforceable redemption rights and no visibility into their reserves," Höptner told Cointelegraph. He said USDAU brings dollar liquidity inside Europe's regulatory perimeter, while giving European companies access to dollars for global trade and cross-border payments. "In global trade and FX markets, the US dollar is the glue," Höptner added, noting that for European corporates making cross-border payments globally, "offering only a euro stablecoin isn't enough."

Other European issuers are making similar arguments. Stable Mint CEO James Bennett said demand for dollar stablecoins in Europe reflects practical business needs rather than something policymakers can 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 the company provided on Wednesday. Fiat Republic CEO Adam Bialy pointed to demand from crypto platforms and stablecoin companies seeking round-the-clock dollar settlement, saying the demand is "driven by practical needs, not speculation" and that a regulated dollar token can reduce friction in cross-border settlement between Europe, the UK and North America.

Societe Generale-FORGE (SG-Forge), the digital asset subsidiary of French banking group Societe Generale, said the goal should be diversification rather than opposition to dollar stablecoins. "We believe the objective is not to oppose dollar stablecoins, but to foster a diversified and resilient ecosystem where users can access both euro and dollar-denominated digital cash solutions within a robust regulatory framework," a spokesperson told Cointelegraph. SG-FORGE said its USD CoinVertible (USDCV), launched in 2025, has attracted interest for trading, settlement, collateral management and treasury operations. Despite the activity, Europe-issued dollar stablecoins remain small relative to Tether USDt (USDT) and Circle's USDC, with CoinGecko putting USDSM and USDCV at about $13 million each versus $184 billion for USDT and $74 billion for USDC.