European Stablecoin Market Sees Significant Growth
The market capitalization of euro stablecoins more than doubled in the 12 months following the June 2024 rollout of the European Union's Markets in Crypto-Assets Regulation (MiCA). This surge reversed a 48% decline experienced in the preceding year.
According to the Euro Stablecoin Trends Report 2025 from London payments processor Decta, the market cap climbed to approximately $500 million by May 2025. This growth was attributed to improved issuer obligations and standardized reserve requirements. The figure has since reportedly risen to $680 million.
Key Stablecoins Drive Growth
The expansion was notably concentrated among several prominent tokens. EURS, issued by Malta-based Stasis, recorded the most significant gains, with a 644% surge reaching $283.9 million by October 2025. Circle Internet's EURC and EURCV, issued by Societe Generale's SG-Forge, also experienced substantial increases.
Contrast with Previous Year and Broader Market
This period of growth stands in sharp contrast to the 48% contraction observed in the year leading up to MiCA's implementation. Furthermore, it differs from the 26% advance seen in the total stablecoin market cap, which continues to be dominated by U.S. dollar-pegged tokens.
Euro stablecoins still represent a very small portion of the $300 billion held in dollar-pegged tokens. The market for dollar-denominated stablecoins is led by Tether's USDT, with Circle's USDC holding the second position. This significant gap underscores the continued dominance of dollar-denominated assets, despite the regulatory tailwinds favoring euro alternatives.
Surge in Transaction Activity
Transaction activity mirrored the growth in market capitalization. Monthly euro stablecoin volume increased nearly ninefold after MiCA's implementation, reaching $3.83 billion. EURC and EURCV were among the primary beneficiaries, with their respective volumes expanding by 1,139% and 343%. This increase was driven by greater usage in payments, fiat on-ramps, and digital asset trading.
Increasing Consumer Awareness
Consumer awareness of euro stablecoins appears to be rising across several European Union countries. Decta's report identified substantial spikes in search activity, including a 400% growth in Finland and a 313.3% increase in Italy. Smaller, yet steady, rises were also observed in markets such as Cyprus and Slovakia, indicating a broadening interest in euro-denominated stablecoins.
Impact of MiCA Regulation
The regulatory framework provided by MiCA seems to have effectively addressed previous concerns regarding issuer standards and reserve transparency, which had previously hindered adoption. The introduction of standardized requirements has established clearer operating parameters for euro stablecoin issuers competing within European markets.