European stablecoin issuers are championing regulated US dollar tokens, arguing that the bloc's effort to reinforce the euro does not remove businesses' need for dollar liquidity.

AllUnity, a stablecoin issuer based in Germany, launched its US dollar-pegged token USDAU on Wednesday, broadening a MiCA-regulated product lineup that had previously focused on European currencies. MiCA, the EU's crypto rulebook, took effect for stablecoins in mid-2024, requiring issuers to obtain authorization and hold reserves backing their tokens.

"In global trade and FX markets, the US dollar is the glue," AllUnity CEO Alexander Höptner told Cointelegraph, adding: "For European corporates to make cross-border payments globally, offering only a euro stablecoin isn't enough."

The push into dollar-denominated tokens by European issuers comes as the EU reviews its Markets in Crypto-Assets (MiCA) framework and as the European Central Bank continues to voice concerns that stablecoins could reinforce the dollar's dominance in global finance. The ECB has separately advanced its digital euro project, which it frames as strengthening European payment autonomy, while the United States enacted the GENIUS Act in July 2025, creating a federal framework for dollar payment stablecoins.

Dollar demand Europe "can't wish away"

James Bennett, CEO of Stable Mint, said European demand for dollar stablecoins stems from practical business requirements rather than a preference that policymakers can redirect toward the euro.

"Dollar stablecoins are where the demand is, and Europe can't wish that away," Bennett told Cointelegraph. "What Europe can control is who issues them to European users, and under which rules."

Company-provided figures as of Wednesday show that Stable Mint's USDSM stablecoin has moved more than $380 million onchain across 3.8 million transfers, with more than 2,600 addresses holding the token.

Adam Bialy, CEO of Fiat Republic, pointed to similar demand from crypto platforms and stablecoin firms seeking round-the-clock dollar settlement.

"The demand we are seeing is driven by practical needs not speculation," Bialy told Cointelegraph, noting that a regulated dollar token could reduce friction in cross-border settlement between Europe, the United Kingdom and North America.

Traditional cross-border dollar transfers typically route through correspondent banking chains and settle only on business days, whereas blockchain-based tokens can move around the clock.

Not "euro versus dollar"

Societe Generale-FORGE (SG-Forge), the digital asset subsidiary of French banking group Societe Generale, said the goal should be a diversified market rather than opposition to dollar stablecoins.

"We believe the objective is not to oppose dollar stablecoins, but to foster a diversified and resilient ecosystem where users can access both euro and dollar-denominated digital cash solutions within a robust regulatory framework," a spokesperson for the company told Cointelegraph.

SG-FORGE added that its USD CoinVertible (USDCV), launched in 2025, has attracted interest for trading, settlement, collateral management and treasury operations.

Despite growing interest, Europe-issued dollar stablecoins remain tiny compared with Tether USDt (USDT) and Circle's USDC. CoinGecko data puts USDSM and USDCV at roughly $13 million each, versus $184 billion for USDT and $74 billion for USDC. USDT dates to 2014 and USDC to 2018, and both are embedded across major exchanges and payment platforms.

Höptner framed the opportunity in similar terms, saying it is "not 'US versus Europe'" but rather about building interoperable financial infrastructure that connects dollar liquidity with European banks and businesses.

The EU's MiCA review is now the next milestone to watch: its outcome will set the conditions under which European-licensed issuers can offer dollar tokens to users inside the bloc.