A EUR stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged 1:1 to the Euro (EUR). These digital assets function as a bridge between the traditional financial system and the decentralized digital economy, combining the price stability of the Euro with the technological advantages of blockchains, such as fast global transactions and programmability. They serve as a stable medium of exchange, store of value, and unit of account within the volatile cryptocurrency ecosystem, offering an alternative to the more dominant USD-pegged stablecoins. ^{[1] [2]}

As of January 2026, the EUR stablecoin market has a total market capitalization ranging from approximately $670 million to $710 million, with a 24-hour trading volume between $53 million and $70 million. The market is highly concentrated, with a few major issuers commanding a significant majority of the market share. ^{[1] [2]}

History and Development

Early Stages (2018–2022)

The market for EUR-pegged stablecoins was described by the European Central Bank (ECB) in a June 2022 report as being in its "infancy." At that time, the total market capitalization was only around €500 million, which constituted just 0.2% of the global stablecoin market, overwhelmingly dominated by USD-pegged assets. The primary players during this period were STASIS EURO (EURS), launched in July 2018, and Tether's EURt (EURT), which together accounted for about half of the market. ^[3]

The ECB's analysis found that these early stablecoins were not effective as safe havens or hedges against market risk. They traded on small, illiquid markets, which led to significant price volatility compared to their USD counterparts. For example, in 2021, EURS traded below its €1 peg on 25% of all days and experienced a maximum discount of nearly 9%. Furthermore, these assets showed a positive correlation with risky assets like Bitcoin and equities, meaning their value tended to fall during periods of broad market stress, undermining their "stable" characteristic. ^[3]

The Turning Point and MiCA Era (2022–Present)

The landscape for EUR stablecoins was fundamentally reshaped by two key developments. The first was the launch of Euro Coin (now EURC) by Circle in June 2022. As the issuer of the prominent USDC stablecoin, Circle's entry signaled a shift towards more transparent and institutionally-backed EUR stablecoins. ^{[3] [4]}

The second and more impactful event was the finalization and phased implementation of the European Union's Markets in Crypto-Assets (MiCA) regulation. Coming into full effect in mid-2024, MiCA created the world's first comprehensive regulatory framework for crypto-assets, providing legal certainty for issuers and users. The regulation established strict standards for reserves, governance, and redemption rights, particularly for stablecoins classified as Electronic Money Tokens (EMTs). This framework catalyzed a "flight to quality," with MiCA-compliant issuers gaining significant market share and driving greater market stability and liquidity. This era also saw the entry of traditional financial institutions, such as Société Générale's digital asset arm, which launched its own EUR stablecoin. ^{[3] [2]}

Mechanism of Operation

EUR stablecoins maintain their peg to the Euro primarily through reserve backing, although other models exist. ^[1]

Fiat-Collateralized

The most common model involves backing each stablecoin token with an equivalent amount of Euro-denominated assets held in reserve. These reserves are typically managed by the centralized issuing entity and consist of cash in bank accounts or highly liquid, short-term government debt. Under MiCA regulation, issuers of Electronic Money Tokens must maintain a 1:1 reserve of high-quality liquid assets, with at least 30% held as deposits in credit institutions, to ensure token holders can redeem their assets for fiat currency at any time. The peg is maintained through a process of minting and burning, where new tokens are created when users deposit Euros and destroyed when users redeem their tokens for Euros. ^{[3] [1]}

Other Models

• Crypto-Backed/Synthetic: These stablecoins are generated by locking other crypto-assets as collateral in a smart contract. Examples include sEUR (Synthetix) and Jarvis Synthetic Euro (JEUR). They often rely on over-collateralization to absorb the price volatility of the underlying collateral. ^[2]
• Algorithmic: These stablecoins use algorithms to manage the token supply to maintain the peg, expanding or contracting the supply based on market demand. Celo Euro (CEUR) is an example of an algorithmic stablecoin integrated into the Celo ecosystem. ^[2]

Regulation: The MiCA Framework

The Markets in Crypto-Assets (MiCA) regulation is the cornerstone of the modern EUR stablecoin market in the European Union. It classifies stablecoins into two main categories:

• Asset-Referenced Tokens (ARTs): Pegged to a basket of assets, which could include multiple fiat currencies or other commodities.
• Electronic Money Tokens (EMTs): Pegged to a single official currency, like the Euro. Most major EUR stablecoins are structured as EMTs to align with this regulatory framework.

Key requirements for issuers of EMTs under MiCA include:

• Authorization: Issuers must be licensed as a credit institution or an Electronic Money Institution (EMI) within an EU member state.
• Reserve Requirements: Issuers must hold 1:1 reserves in secure, low-risk, and highly liquid assets.
• Redemption Rights: Token holders are granted a legal right to redeem their tokens for fiat Euro at par value, at any time.
• Capital Requirements: Issuers must meet specific "own-funds" requirements to ensure operational resilience.
• Supervision: Issuers are supervised by national competent authorities, with significant tokens falling under the direct oversight of the European Banking Authority (EBA). ^[3]

Major EUR Stablecoins

As of January 2026, the market is led by a few key projects that are fully or partially compliant with the MiCA framework.

Token (Ticker)	Issuer/Project	Market Cap (USD, Jan 2026)	Key Characteristics
EURC (EURC)	Circle	~$355.8 Million	The market leader, issued as a regulated e-money token. Fully backed by Euro reserves and available on multiple blockchains. [4]
STASIS EURO (EURS)	STASIS	~$143.8 Million	An early pioneer in the market, backed by reserves held in partnered financial institutions. [1]
EUR CoinVertible (EURCV)	Societe Generale-FORGE	~$76.3 Million	Issued by the digital asset subsidiary of a major European bank, signaling institutional adoption. [2]
Anchored Coins AEUR (AEUR)	Anchored Coins	~$55.2 Million	A stablecoin issued by a Swiss-based entity, focused on providing a stable, compliant digital Euro. [1]
Monerium EUR emoney (EURE)	Monerium	~$25.8 Million	Framed as "e-money," with a focus on regulatory compliance within the EU framework. [2]

EURC

EURC, formerly known as Euro Coin (EUROC), is the leading EUR stablecoin by market capitalization. It is issued by Circle, the same company behind USDC. EURC is designed to be a MiCA-compliant e-money token, redeemable 1:1 for the Euro. It operates on a full-reserve model, with reserves composed of euro-denominated assets held at regulated financial institutions. Circle provides monthly public attestation reports on its reserves from a major accounting firm to ensure transparency. ^{[4] [5]}

To position itself for the MiCA regulation, Circle secured a conditional Digital Asset Service Provider (DASP) registration in France and applied to become an E-Money Institution (EMI) in the European Economic Area (EEA). The stablecoin is designed for interoperability and is available on multiple blockchains, including Ethereum, Solana, Avalanche, Base, and Stellar. ^[4]

Use Cases and Benefits

EUR stablecoins offer several advantages within the digital asset economy. Key use cases include:

• Hedging and Stability: They provide a stable asset for traders and investors to hedge against the price volatility of other cryptocurrencies. ^[1]
• Decentralized Finance (DeFi): EUR stablecoins are a fundamental component of DeFi, enabling users to lend, borrow, and provide liquidity on various platforms to earn yield. EURC, for instance, is integrated into major DeFi protocols like Uniswap and Curve. ^[4]
• Cross-Border Payments and Remittances: They facilitate fast, low-cost international payments that settle in seconds, bypassing the slower and more expensive traditional banking system. Some projects are exploring integration with legacy systems, such as SG-Forge's collaboration with SWIFT. ^{[1] [2]}
• Real-World Transactions: EUR stablecoins are beginning to be used for real-world applications, such as merchant settlements and the purchase of high-value assets like real estate. ^[2]
• Global Store of Value: They allow individuals and businesses worldwide to hold a euro-denominated asset to protect against local currency inflation, without needing a European bank account. ^[4]