‘Euro stablecoin isn’t enough’: EU issuers make case for USD tokens

What happened

AllUnity, a German stablecoin (a digital token meant to hold a fixed value, usually one dollar) issuer, launched its US dollar-pegged stablecoin USDAU on Wednesday, expanding its MiCA (the EU’s regulation for crypto markets)-regulated lineup beyond European currencies. European issuers say Europe cannot ignore demand for dollar stablecoins as businesses seek USD liquidity for global payments and settlement.

European stablecoin issuers are making the case for regulated US dollar tokens, arguing that Europe’s push to strengthen the euro does not eliminate businesses’ need for dollar liquidity. “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.”

European issuers’ push into dollar stablecoins comes as the EU reviews its MiCA framework and the ECB continues to raise concerns about stablecoins reinforcing the dollar’s global dominance. Europe cannot “wish away” dollar demand Stable Mint CEO James Bennett said demand for dollar stablecoins in Europe reflects practical business needs rather than something policymakers can simply steer toward the euro.