AllUnity, a German stablecoin issuer operating under the European Union's Markets in Crypto-Assets Regulation, launched a US dollar-pegged token called USDAU on Wednesday, extending its regulated lineup beyond euro-denominated products as European corporate demand for dollar settlement intensifies.

The move crystallizes a broader push by European regulated issuers into dollar tokens even as EU policymakers weigh whether the bloc's crypto rulebook should lean harder toward the euro. AllUnity CEO Alexander Höptner framed the dollar as essential infrastructure for cross-border commerce.

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

What is driving demand for dollar stablecoins in Europe?

Stable Mint CEO James Bennett attributed the demand to structural settlement needs that euro-only products cannot satisfy. "Dollar stablecoins are where the demand is, and Europe can't wish that away," Bennett said. "What Europe can control is who issues them to European users, and under which rules."

Stable Mint's USDSM has moved more than $380 million onchain across roughly 3.8 million transfers and sits in more than 2,600 addresses, according to company figures shared Wednesday. The issuer is positioning USDSM as a regulated alternative for institutions that want dollar liquidity without touching offshore token issuers.

Fiat Republic CEO Adam Bialy pointed to a parallel demand pool: crypto trading platforms and stablecoin issuers seeking round-the-clock dollar settlement. "The demand we are seeing is driven by practical needs, not speculation," Bialy said, adding that a regulated dollar token can compress settlement friction between Europe, the UK and North America.

How large are European-issued dollar tokens?

Europe-issued dollar tokens remain a rounding error against offshore incumbents. CoinGecko data cited in the report places USDSM and SG-FORGE's USDCV at roughly $13 million in combined circulating supply. Tether's USDt commands about $184 billion, while Circle's USDC sits near $74 billion.

SG-FORGE, the digital asset arm of French banking group Societe Generale, rolled out USD CoinVertible in 2025 and reports traction in trading, collateral management and corporate treasury workflows. A company spokesperson rejected the framing of an existential contest between dollar and euro 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," the spokesperson said.

What is at stake in the MiCA review?

The activity lands during an ongoing European Commission review of MiCA, with the European Central Bank continuing to raise concerns about stablecoins reinforcing the dollar's global dominance. The ECB has separately launched Pontes, a tokenized-asset settlement infrastructure designed to operate without stablecoins.

USDC issuer Circle has separately urged EU lawmakers to revise MiCA reserve requirements. The Commission's review will determine whether European-issued dollar tokens gain clearer issuance pathways or face tighter constraints on reserve composition and authorization.

AllUnity's Höptner cast the market structure as complementary rather than adversarial, describing the opportunity as interoperable infrastructure connecting dollar liquidity to European banks and corporates.

The next concrete milestone is the MiCA revision itself: any changes to authorization rules or reserve mandates adopted by the Commission will set the ceiling for how aggressively European issuers can scale dollar-token supply against Tether and Circle.