Can Euro Stablecoins Like EURC Compete With USDT and USDC?

Euro-backed stablecoins are no longer just crypto curiosities—they’re gaining serious traction. The euro stablecoin market has surged around 30–44% in the first half of 2025, nearing half a billion dollars in circulation. That rapid growth shows real momentum behind these tokens.

But the big question is this: can they threaten the hegemony of USD-backed stalwarts like USDT and USDC? Those dominate with over $200 billion in combined market cap . Evidence suggests euro stablecoins like EURC are finding real use in DeFi and cross-border payments, and may even help Europe reduce reliance on dollar-based systems. Yet USD stablecoins still massively outperform them in depth and adoption.

In this article, we’ll explore how euro-backed alternatives work, why they’re emerging now, and whether they have the muscle to challenge dollar dominance in decentralized finance and global money movement.

Why Euro-Backed Stablecoins Are Gaining Momentum

Euro stablecoins are growing fast because the euro has strengthened and Europe now has clear crypto rules.

The euro has climbed about 13% against the dollar this year, making euro assets more attractive in crypto markets. And with the EU’s MiCA regulation in full effect since December 2024, issuers and institutions now know the rules they must follow.

EURC, Circle’s euro stablecoin, has grown about 5× since last year. Its supply surged nearly 43% in the past month to over €220 million, with active wallets also climbing by 66%. That shows real demand, not just hype.

Major players like DWS and SocGen now have BaFin or MiCA approval for euro stablecoins. And Europe’s stablecoin usage jumped from 16% to 34% of global stablecoin volume—although nearly all of it is still USD-pegged.

Simple takeaway: a stronger euro, clear regulation, and rising adoption are fueling interest in euro-pegged stablecoins right now.

USD vs EUR: Stablecoin Dominance in DeFi and Payments

EURC and USDC offer the same stability promise, but their real-world reach differs sharply.

USDC holds a $62 billion market cap and $6.8 billion in daily volume. Its liquidity is deep. That makes it a go-to for major DeFi trades and institutional transactions. For quick access to dollar liquidity, users often use Changelly to buy and send USDT.

By contrast, EURC has around a $207 million market cap and only $20–22 million in daily trading volume. Its pools are shallower. That means larger trades may face slippage and limited access.

But liquidity isn’t everything. Users value trust and regulation. Both USDC and EURC are 100 % backed by fiat reserves and undergo monthly attestations. EURC adds another layer: it’s MiCA-compliant, which means it meets EU’s strict rules for e‑money tokens.

USDC dominates across more blockchains and has far more integrations in DeFi apps. EURC is supported only on a few major chains, like Ethereum, Solana, and Avalanche. That limits its availability in DeFi.

Conversion rates matter too. EURC trades at about 1 EURC = 1.17 USDC. That slight premium reflects FX differences and routing friction.

Meet the Euro Stablecoin Contenders: EURC, EUROe, and More

EURC, Circle’s euro stablecoin, leads the pack. It’s fully backed 1:1 by euros in regulated EU banks. And it’s MiCA‑compliant, with reserves audited monthly and held separately from Circle’s own funds. EURC launched in mid‑2024 via Circle SAS and now lives on Ethereum, Solana, Avalanche, Base, Stellar, and more. As of late June, the supply topped €171 million—and reserves matched supply exactly .

EUROe is another contender from Membrane Finance in Finland. It is also regulated as an electronic‑money token and redeemable 1:1 for euros. EUROe runs mainly on Ethereum and targets fintechs, DAOs, and crypto-native European businesses. Its adoption is much smaller—CoinDesk data puts its market cap under $250 k—and daily volume near zero. But it signals growing interest in diverse euro‑stablecoin models.

Other euro-pegged options include:

• EURS from STASIS: A pioneer with reserves in EU banks.
  
• Monerium’s e‑money tokens: Used in regulated remittance and invoicing.
  
• Celo’s euro stablecoin: A small player but part of mobile‑focused ecosystems.
  

Among these, EURC stands out for its scale, multi‑chain support, and Circle’s integration with USDC rails. EUROe offers a European‑centric toolset but remains niche. STASIS and others fill specific business niches.

EURC offers the strongest infrastructure and momentum, while EUROe and others bring regional diversity and tailored use cases.

Challenges Facing Euro Stablecoins

Euro stablecoins face real obstacles that slow adoption and limit their reach.

Liquidity and Market Depth
EURC’s trading pools are shallow compared to USDC and USDT. Many trades risk slippage, which deters professional DeFi users. Large finance apps still prefer dollar-based stablecoins.

Limited Real-World Use Cases
Europe’s SEPA network offers fast, low-cost euro transfers. That reduces the need for euro stablecoins in everyday payments. Their use remains largely confined to crypto-native transactions.

Regulatory and Sovereignty Concerns
The ECB worries euro stablecoins could erode monetary sovereignty and weaken central bank control. Although MiCA offers clarity, compliance requirements may restrict scale and innovation.

Fragility and Operational Risk
Stablecoins are exposed to smart contract bugs, reserve transparency gaps, redemption delays, and external fraud. S&P ranks EURC’s stability as strong, but flags its small size and limited history compared to dollar counterparts.

Competition from Digital Euro and TradFi Alternatives
A digital euro (CBDC) could reduce private stablecoin relevance. Meanwhile, banks and fintechs might build or use deposit tokens and other digital payments, narrowing the niche for euro stablecoins.

Conclusion

Euro-backed stablecoins have made real progress—but they’re far from overtaking the dollar’s dominance. EURC, EUROe, and other euro-backed tokens bring clear value: euro stability, regulatory clarity, and a tighter fit for European users. But challenges remain—limited liquidity, regulatory friction, competition from CBDCs and traditional finance, and lower adoption in global DeFi ecosystems.

Yet there’s reason for optimism. Growth in euro stablecoin supply, rising institutional interest, and stronger tooling frameworks hint at a broader shift. These tokens can carve out meaningful roles in EU-based fintech, cross-border euro settlements, and regulated on-chain financial services.

The path ahead likely leads to coexistence, not conquest. Euro stablecoins will complement, not replace, USD-backed giants. They serve regional needs, diversify stablecoin exposure, and reinforce Europe’s crypto infrastructure. As the digital euro matures and euro-pegged tokens scale, their influence will grow—but global DeFi dominance and dollar supremacy remain firmly tied to USDT and USDC.