The transition period under the EU’s Markets in Crypto-Assets (MiCA) regulation ended on July 1, 2026. Crypto-asset service providers that were still operating under their old national regimes had to obtain an EU authorization by that date or stop serving customers in the bloc. The deadline closes a cycle that began in 2024 and gives the first clear picture of the regulated market: noncompliant dollar stablecoins pushed out, euro stablecoins growing fast from a very small base, and banks finally moving from watching the market to issuing tokens themselves.
Eight euro stablecoins now meet every MiCA requirement, and their combined market capitalization rose from $295.6 million to $673.9 million in a year, a 128% increase. Even so, euro tokens make up less than 0.3% of a global market that the dollar still dominates, and that the GENIUS Act, the US federal stablecoin law passed in July 2025, is pushing further ahead.
Compliance has already reshaped what European users can hold. Tether’s USDT does not meet MiCA’s requirements and has been gradually removed from EU platforms since early 2025; Coinbase, Kraken and Crypto.com have all dropped USDT trading for European users. That left the field to compliant tokens, led by Circle’s EURC. Circle has been a licensed issuer in France since July 2024.
What MiCA requires of a euro stablecoin
- E-money token (EMT) status: only e-money institutions and banks authorized in the EU may issue one.
- Full 1:1 reserve backing, with at least 30% held as bank deposits, rising to 60% for tokens classified as significant.
- Own funds proportionate to reserves, plus regular audits.
- A right to redemption at par for holders, at any time and free of charge.
- A ban on paying interest, so tokens do not compete head-on with bank deposits.
Qivalis gives European banks their own token
Nine banks, including ING, UniCredit and CaixaBank, launched the Amsterdam-based Qivalis consortium in September 2025, and other lenders have joined since. It is preparing a fully MiCA-compliant euro stablecoin and is targeting a first issuance in the second half of 2026. The goal goes well beyond retail crypto. The banks want to give Europe an on-chain settlement instrument for cross-border payments, delivery-versus-payment settlement of tokenized assets, and B2B flows, and to reduce the region’s reliance on the dollar rails (USDT, USDC) that dominate those uses today.
| Euro stablecoin (EMT) | Dollar stablecoin | Digital euro (CBDC) | |
|---|---|---|---|
| Issuer | EU-licensed EMI or bank (Circle, Qivalis…) | Private issuers, under the GENIUS Act in the US | Central bank (ECB) |
| Nature of the claim | Claim on the issuer, 1:1 reserve | Claim on the issuer, reserve quality varies | Direct claim on the central bank |
| Main use cases | On-chain settlement, B2B, crypto markets | Crypto trading, international transfers | Everyday retail payments |
| Availability | 8 compliant tokens, liquidity still thin | Widespread outside the EU, restricted inside it | Pilot in 2027, launch hoped for 2029 |
European digital payments are settling into three tiers: regulated private stablecoins for on-chain settlement, Wero for account-to-account payments, and a digital euro targeted for 2029. The question is no longer whether a tokenized euro will exist. It is which of the three tiers will win the volume, and how quickly euro tokens can close a gap of two orders of magnitude with the dollar.