Revolut launched EURR, its euro-based stablecoin, on August 26, marking the fintech company's entry into the stablecoin market. The firm said it plans to offer stablecoins pegged to additional currencies beyond the euro.
The launch comes as Tether's USDT, the dominant USD-pegged stablecoin, was delisted across Europe following its failure to obtain a MiCA license. Revolut is set to discontinue USDT by August 31.
Analysts are split on EURR's prospects. Critic Scott Melker argued that euro stablecoins face structural headwinds, stating that demand for euros is limited outside Europe and that the currency cannot compete with dollar-backed alternatives. However, Zach Abrams, former CEO of institutional stablecoin transfer system Bridge, took a broader view, suggesting that non-USD stablecoins will play a critical role in local settlement and other financial functions as tokenization expands.
European Market Growing Despite USD Dominance
USD-based stablecoins, led by USDT and Circle's USDC, account for over 90% of the stablecoin market. Yet euro alternatives have gained momentum since MiCA regulations took effect.
Europe ranks second globally in stablecoin transaction volume with a 26% market share, behind North America. Non-USD stablecoins recorded 137% growth over 30 days, reaching $15 billion in volume, compared to 22% growth in USD stablecoins at nearly $7 trillion.
Circle's EURC is the largest euro stablecoin with $455 million in supply, representing more than 50% of the total EUR-pegged stablecoin market valued at $772 million. Current euro stablecoins are issued primarily by private firms.
The European Union is planning a digital euro by 2029, potentially affecting the trajectory of private euro stablecoin adoption.
