Stablecoin partner signed by SocGen and BCB marks another collaboration
Euro-Backed Stablecoins Gaining Ground but Still Trail USD Counterparts
Euro-denominated stablecoins, like EURCV, are gradually making their mark in the digital currency market, but they still lag significantly behind USD-backed stablecoins. According to recent data, USD-backed stablecoins dominate over 99% of the global stablecoin market, with euro stablecoins accounting for just under 1%, representing about 0.2% of the global stablecoin capitalization [1][2].
The primary market activity and growth are generally observed on Ethereum, which remains the dominant platform for stablecoins. However, given the growth of euro stablecoins since late 2024, it is plausible that issuers might explore or plan expansion onto other blockchains to capture additional user bases and benefits such as faster transactions or lower fees [2][4].
Regarding platforms beyond Ethereum such as Solana, Stellar, and XRP Ledger, the search results do not provide specific information on EURCV or euro stablecoins’ current trends or expansion plans on these blockchains.
One of the key factors contributing to the continued dominance of USD-backed stablecoins is liquidity, global reach, and regulatory clarity in the US [1][3]. Euro stablecoins, on the other hand, face challenges gaining widespread adoption, partly due to users’ preference for dollar liquidity and global usage patterns [1][2].
The introduction of the EU's MiCA framework aims to provide clearer legal frameworks and reduce dependency on US infrastructure but has yet to create strong incentives for EUR stablecoin usage [1].
Looking ahead, European institutions and stablecoin issuers remain motivated to boost euro stablecoin adoption to reinforce monetary sovereignty and reduce dependence on USD-based digital assets [1][3]. Growth in euro stablecoins might drive issuers to deploy them on alternative blockchains such as Solana, Stellar, or XRP Ledger, which offer advantages like scalability and lower transaction costs [2][4].
However, no explicit launch or roadmap details are available yet from the search results. Regulatory developments, including global coordination calls, could influence how euro-denominated stablecoins expand across different blockchain networks, aligning with the broader push for tokenized cash and next-generation payments infrastructure [3][4].
Notable developments include BCB Europe, a part of BCB Group, believing there is a market for euro-denominated stablecoins in Europe. Societe Generale-FORGE, another key player, has partnerships with crypto exchanges Bitstamp, Bitpanda, and institutional crypto exchange Bullish. Societe Generale-FORGE has plans to expand its stablecoin beyond Ethereum to Solana, Stellar, and XRP Ledger, but these have not yet launched [1][2].
In January, Societe Generale-FORGE entered into a partnership with digital asset bank Sygnum, making EURCV stablecoin available to its banking partners. Jerome Prigent, Managing Director of BCB Europe, stated that euro-denominated stablecoin can reduce the cost of money remittances between emerging economies and Europe by up to 80%.
Currently, there are 41 million EURCV stablecoins issued, with four wallets holding 90% of the balance. The stablecoin market is currently dominated by dollar-pegged coins, but the Middle East, Africa, and Latin America are also looking for dollar alternatives, according to a recent article.
As the market continues to evolve, it is expected that euro-denominated stablecoins will strive to capture greater market share and establish themselves as a leading euro alternative to dollar-dominated stablecoins.
- The increased use of euro-denominated stablecoins like EURCV is driven by the ambition to reinforce monetary sovereignty and reduce dependence on USD-based digital assets in Europe.
- To capture additional user bases and benefits such as faster transactions or lower fees, issuers might consider expanding euro stablecoins onto other blockchains like Solana, Stellar, or XRP Ledger, beyond Ethereum.
- Regulatory developments, including global coordination calls, could significantly influence how euro-denominated stablecoins, such as EURCV, expand across different blockchain networks, aligning with the broader push for tokenized cash and next-generation payments infrastructure.
