What role for stablecoins in the future of digital finance?

The global stablecoin market has experienced rapid growth in recent years exceeding US dollar (USD) 280 billion by the end of 2025. Despite this expansion, the market remains predominantly USD-centric: USD-denominated stablecoins account for 99% of global issuance. Two issuers, Tether and Circle, dominate the landscape, with market share of USD 184 billion (63%) and USD 75 billion (26%), respectively. By contrast, euro-denominated stablecoins are marginal, amounting to only € 395 million. 

Recent European industry initiatives aim to bridge this innovation gap and ensure Europe’s participation in this rapidly growing market by promoting the establishment of euro-denominated stablecoins. These efforts seek to harness the opportunities offered by distributed ledger technology (DLT) in financial markets, whilst ensuring full compliance with the Market in Crypto-Assets (MiCA) Regulation.

EU and global developments have prompted a broader policy debate on how the EU’s existing crypto-assets framework interacts with the global stablecoin market and how it balances opportunities with risks related to concentration and USD dominance. As policymakers address these questions, they must recognise that the stablecoin market is inherently global and offers real opportunities for both consumers and businesses, alongside well-diagnosed risks. To promote innovation, the EU regulatory framework should allow European actors to maintain a presence in this market, lest these opportunities be captured by others, whilst appropriately mitigating risks. 

To support the development of a competitive stablecoin industry in Europe, DIGITALEUROPE calls on policymakers to consider the following recommendations:  

• The European Commission should assess the equivalence of third-country regimes with MiCA to enable third-country operators to offer stablecoins in the EU, whilst preserving existing consumer and investor protection, guaranteeing financial stability and implementing consistent regulatory safeguards 

• International standards should establish proportionate prudential requirements on banks’ exposure to crypto-assets 

• Legislation should facilitate authorised crypto-asset service providers (CASPs) under MiCA to provide e-money tokens within the EU payments framework