Euro stablecoin

Euro stablecoins work like their dollar counterparts: an issuer holds euro deposits and short-term assets and mints tokens redeemable one to one. Since MiCA's stablecoin rules applied in June 2024, any token referencing a single official currency offered in the EU must be an e-money token, issued by a credit institution or an electronic money institution, with redemption at par and no interest paid to holders.

Examples include Circle's EURC, Société Générale-Forge's EURCV and tokens from several European fintechs and banks. They matter for trading pairs in euros, for on-chain payments between European companies and for the EU's goal of not depending entirely on dollar tokens and US issuers.

Their market remains a small fraction of the stablecoin total, which is overwhelmingly in dollars, so liquidity in DeFi is thin and spreads can be wider. Euro yields, reserve rules that require part of the money to sit in banks and competition from a future digital euro all shape how far they can grow.