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Beyond USD: Euro Stablecoins Set to Reshape Finance
5 Dec
Summary
- Euro stablecoins represent a tiny fraction of the current market.
- Global tokenized assets are projected to reach $30 trillion by 2034.
- A significant portion of euro's global currency flows could move on-chain.
Euro stablecoins, currently representing a modest $600 million of a market dominated by dollar tokens, are on the cusp of a major expansion. Despite Europe's current focus on central bank digital currencies, the underlying economic reality points to a significant future for privately issued euro stablecoins. The sheer volume of economic activity settled through stablecoins globally, which surpassed $28 trillion in 2024, highlights the growing importance of this on-chain settlement infrastructure.
The current dominance of dollar-based stablecoins is not a reflection of the euro's irrelevance but rather a gap in infrastructure. As global tokenized assets are projected to reach $30 trillion by 2034, the eurozone, a $16 trillion economy and the world's second-largest currency bloc, cannot afford to be absent from this on-chain financial revolution.
Given the euro's enduring global significance and the irreversible shift towards tokenized finance, a globally impactful euro stablecoin is an inevitable outcome. Even a small fraction, 0.1%, of the euro's daily currency flows moving on-chain would represent billions in daily settlements, sufficient to underpin a substantial euro stablecoin ecosystem.
