Euro Stablecoins: A Sleeping Giant?

Euro stablecoins might seem small now, but they have huge potential. Right now, most stablecoins are tied to the US dollar, making up over 99% of the market. Euro stablecoins, on the other hand, are barely a blip at around $600 million. But don't let the small numbers fool you. The euro is the world's second-largest currency, and Europe's economy is massive. In fact, the Eurosystem's T2 platform processed around €2. 2 trillion per day in 2023. That's a lot of money moving around. Stablecoins are already a big deal. In 2024, they processed roughly $28 trillion, which is more than Visa and Mastercard combined. This shows that stablecoins are becoming a major part of how money moves around the world. The problem for Europe is that most of this activity is happening in dollars, not euros. But that doesn't mean euro stablecoins are unnecessary. It just means Europe needs to catch up and connect its currency to this growing infrastructure. The world is moving towards tokenized finance, and stablecoins are at the heart of this shift. Traditional payment systems are slow, with cut-off times and reconciliation cycles that can take days. But with stablecoins, assets and payments settle directly on-chain. This is a much faster and more efficient way of doing things. Standard Chartered predicts that tokenized real-world assets could reach $30 trillion by 2034, and Citigroup thinks tokenized digital securities could hit $5 trillion by 2030. None of this can happen without on-chain fiat, and the euro is too important to be left out. So, why aren't euro stablecoins bigger? Well, dollar stablecoins had a decade head start. But Europe is catching up. The next big expansion in stablecoins isn't going to be another USD token. It's going to be a credible, scalable euro stablecoin that's built for the size of Europe's economy. The real question for policymakers and investors isn't whether euro stablecoins will win out. It's about finding the right mix of on-chain euro options that balance innovation and financial stability.