Euro stablecoin supply stood at roughly €794 million, about $900 million, on September 23, 2026 — a figure dwarfed by more than $311 billion in dollar-pegged tokens, according to market data cited by European issuers. That gap is now the centerpiece of an argument taking shape inside the EU's regulatory perimeter: Europe needs MiCA-compliant dollar stablecoins, not just euro ones.

Regulated issuers operating under the Markets in Crypto-Assets framework say business demand for USD liquidity in global payments and settlement is too large to ignore. Their position is straightforward — if that demand gets met regardless, it is better served by licensed European entities holding reserves at EU institutions than by offshore alternatives outside supervisor reach.

How big is the gap?

Over 99% of the stablecoin market is pegged to the US dollar. Within the euro segment, two issuers carry most of the weight:

• Circle's EURC: supply of approximately €460 million
• Société Génécale Forge's EURCV: supply of approximately €190 million

Several of the same players now run dollar products alongside their euro tokens. Circle issues USDC next to EURC, and SG-Forge has added newly issued dollar tokens next to EURCV. AllUnity launched its USD-pegged USDAU token around September 30, 2026, while Paxos offers USDG, another dollar token positioned for the regulated market.

Each issuer frames its dollar product as a complement to euro options rather than a rival. The consistent message: euro tokens serve European needs, while dollar tokens keep European firms competitive in global markets that already settle in USD.

What does MiCA require?

The EU's Markets in Crypto-Assets framework took effect in 2024 and created a licensing system for stablecoin issuers. Under MiCA, fiat-backed stablecoins fall into the category of e-money tokens, or EMTs. Issuers must hold 1:1 reserves, largely in cash or cash equivalents held at EU institutions. As of early October 2026, 25 companies held MiCA EMT issuer authorizations across the bloc.

This licensing structure anchors the issuers' argument. A dollar token issued under MiCA gives European supervisors visibility over the reserves backing it — oversight that evaporates when users hold offshore dollar stablecoins beyond the EU's reach.

Why is the debate happening now?

Dollar liquidity remains the foundation of international trade, cross-border payments, and decentralized finance, where most on-chain activity is quoted and settled in USD-pegged tokens. European businesses trading globally do not choose their counterparties' currency. If a supplier in Asia or a trading desk in New York wants dollars, the European firm needs dollars too.

The competitive landscape is getting crowded at the same time. A bank-backed issuer like SG-Forge, a crypto-native firm like Circle, and newer entrants like AllUnity and Paxos are chasing overlapping customers in the same regulated market.

What is at stake for European policy?

The policy question cuts deeper than market share. Supporters frame MiCA dollar tokens as a way to keep reserves and oversight inside Europe while serving genuine commercial demand — a pragmatic accommodation of the currency reality in global settlement.

Skeptics of dollar dominance read the same trend less favorably. Every regulated USD token issued in Europe arguably deepens the continent's reliance on a currency it does not control, even as euro tokens remain a small slice of the overall market.

The practical consequence for treasurers and payment providers is operational: USD-pegged liquidity issued under an EMT license offers reserve transparency and EU institutional custody that offshore dollar stablecoins cannot match. With 25 authorized EMT issuers and multiple dollar products already live or launching, the direction of the European market appears set — euro tokens for domestic rails, MiCA-regulated dollar tokens for everything else, with the balance between the two determined less by regulation than by where global counterparties choose to settle.