Euro-backed stablecoins have experienced a remarkable surge in their market capitalization, exceeding a 100% increase, coinciding with the establishment of regulatory frameworks for this asset class. This significant rebound has occurred since the European Union's Market in Crypto Assets (MiCA) regulation became effective.
EURS, EURC, and EURCV Dominate the European Market
In May 2025, the market capitalization of Euro-backed stablecoins stood at approximately $500 million. This figure was attributed to improvements in issuer obligations and standardized reserve requirements. According to data from Coingecko, this key metric has since risen to $680 million, representing a more than 30% increase within a seven-month period.
A report titled "Euro Stablecoin Trends Report 2025" from Decta, a London-based payments processing company, indicates a potential shift in the landscape for tokens pegged to the single European currency. Market observers and analysts have identified that a substantial portion of this growth is attributable to specific stablecoins. One prominent example is EURS, issued by Stasis, a company based in Malta.
EURS recorded $283.9 million in October 2025, marking the most significant gains. Following EURS, Circle Internet's EURC and Societe Generale's SG-Forge's EURCV also registered notable increases in their market capitalization. In addition to this parallel spike in transaction activity, the monthly volume of euro-stablecoins saw an almost ninefold increase after the implementation of MiCA.
The individual transaction volumes for EURC and EURCV expanded by 1,139% and 343%, respectively. Much of this growth was driven by increased usage in payment systems, fiat on-ramps, and digital-asset trading. Mastercard's partnership with Circle in August may have contributed to the rally in EURC's transaction volume.
Tough Competition Between USD- and EUR-Backed Stablecoins
The uptick in the flow of EUR-backed stablecoins is particularly significant, considering that these assets have historically struggled to gain traction against their U.S. dollar-pegged counterparts.
In the year preceding this trend, the broader stablecoin ecosystem experienced a 48% contraction between these two categories of stablecoins. The latest data also contrasts with a 26% advance in the total stablecoin market capitalization. As of the time of this report, the gap between USD-pegged stablecoins and their euro-backed counterparts has not been entirely closed.
For context, USD-pegged stablecoins possess a market capitalization of up to $300 billion, making the euro-backed stablecoins a tiny fraction of this market. Tether's USDT currently dominates the market by a notable value, followed by Circle Internet's (CRCL) USDC. Meanwhile, Tether has strengthened USDT's backing with significant gold reserves.