Euro stablecoins are an emerging segment within the stablecoin market, designed to bring the stability of the euro to the dynamic world of cryptocurrencies. While dollar-pegged stablecoins like USDT and USDC dominate the space, euro stablecoins offer unique benefits, especially for European users or businesses operating with euros. This article explores what euro stablecoins are, why they exist, their relative popularity, and a list of the top five most capitalized euro stablecoins currently available.
What are euro stablecoins
Euro stablecoins are digital assets pegged to the value of the euro. Like their dollar counterparts, these stablecoins aim to maintain a stable value by being tied to a fiat currency – in this case, the euro. Euro stablecoins are usually backed by reserves in euros or other assets to maintain their value. They are used in cryptocurrency trading, remittances, decentralized finance (DeFi), and as a store of value with low volatility compared to other cryptocurrencies.
Despite their potential, euro stablecoins are less popular than dollar-based stablecoins. This disparity arises partly because the U.S. dollar is more widely used globally, especially in crypto markets. Moreover, dollar stablecoins have had a head start and enjoy higher liquidity and acceptance. However, euro stablecoins are gradually gaining traction, especially within the European Union and among users who prefer transacting in euros.
Top 5 euro stablecoins
Below, we highlight five notable euro-pegged stablecoins, leaders in terms of capitalization.
1. STASIS EURO (EURS)
STASIS EURO (EURS) is the largest euro-backed digital asset, combining the stability of the euro with the transparency, immutability, and efficiency of blockchain technology. EURS operates as an ERC/EIP20 token and was the first stablecoin to introduce delegated payments on the Ethereum network, allowing users to pay transaction fees in EURS or other digital assets rather than traditional GAS fees. This feature greatly improves the user experience.
EURS is supported by a broad ecosystem of liquidity providers, custodians, exchanges, and payment platforms. It operates on five blockchains — Ethereum, Polygon, Algorand, XRPL, and XDC — as well as two bridges, Arbitrum and Gnosis Chain, enhancing its interoperability and accessibility. STASIS provides on-chain transparency and four levels of reserve verification through daily statements, quarterly verifications, annual audits, and on-demand checks by the accounting firm BDO, assuring users of the stable euro backing behind EURS.
Founded in 2018, STASIS aims to bridge European financial markets with the digital asset space by reducing inefficiencies and enabling seamless on-demand settlement. The reserves for EURS are managed by STSS Malta, which keeps them in liquid euro balances. Regulated within the EU, EURS is legally usable in 175 countries worldwide. STASIS’s vision is to offer a reliable, euro-backed alternative to USD stablecoins for users and institutions seeking stability and transparency.
2. EURC (EURC)
EURC, issued by Circle — the company behind the popular USDC stablecoin — is a fully-backed euro stablecoin designed for stability and accessibility. Compliant with MiCA (Markets in Crypto-Assets) regulations, EURC is redeemable 1:1 for euros, with its reserves transparently held in regulated financial institutions within the European Economic Area (EEA). Circle publishes monthly attestations of these reserves, ensuring users of its stable euro-backed value.
As a multi-chain asset, EURC operates on several blockchain networks, including Avalanche, Base, Ethereum, and Solana. This broad accessibility allows businesses to leverage Circle Mint for euro-to-EURC conversions, providing seamless integration into decentralized finance (DeFi), real-time trading, and cross-border payments. EURC’s smart contract infrastructure mirrors that of USDC, facilitating easy integration for developers and businesses.
Circle has taken steps to ensure EURC’s compliance with MiCA requirements, aiming to establish it as a MiCA-compliant e-money token by June 2024. The full-reserve model employed by Circle keeps EURC reserves bankruptcy-remote, with monthly attestations conducted by a Big Four accounting firm. Circle’s long-term vision is to make EURC the most interoperable euro stablecoin through future support for the Cross-Chain Transfer Protocol (CCTP), allowing secure cross-network transactions.
3. Anchored Coins (AEUR)
Anchored Coins (AEUR) is a euro-backed stablecoin issued by Anchored Coins AG, a Swiss corporation based in Zug. Established in 2022, Anchored Coins AG was created by experienced financial services professionals aiming to bring stability to the digital asset space. The AEUR stablecoin is designed to offer a reliable alternative for crypto users seeking stable-value transactions without the volatility of traditional cryptocurrencies.
AEUR is primarily backed by euros held in reserve accounts with FlowBank SA and Swissquote Bank SA. Additionally, to further ensure stability, a bank guarantee is in place in case of issuer default. This guarantee enables AEUR holders to claim their funds directly from the bank if bankruptcy proceedings are initiated against Anchored Coins AG. Each AEUR token operates on Ethereum and BNB Chain, following the ERC20 and BEP20 standards. Anchored Coins also implements independent smart contract audits by PeckShield, a reputable security firm, to maintain high standards of trust and transparency.
The token serves as a stable means of payment and can be redeemed at a 1:1 ratio with euros. This structure allows AEUR to function as a practical tool for daily transactions, both online and offline, without the unpredictable price fluctuations of cryptocurrencies like Bitcoin. Anchored Coins AG envisions AEUR as a secure medium of exchange for individuals and businesses within the digital economy.
4. Eurite (EURI)
Eurite (EURI) is a euro-backed stablecoin issued by Banking Circle S.A., a credit institution authorized by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF). EURI is among the first euro stablecoins regulated by the Markets in Crypto-Assets Regulation (MiCA) within the European Economic Area (EEA), which ensures high standards of consumer protection and financial stability.
EURI is pegged 1:1 to the euro and fully backed by euros held in segregated accounts. This backing structure means that customer funds are bankruptcy remote, providing an extra layer of security for holders. Banking Circle has also introduced a bank guarantee to protect funds in case of issuer default. EURI operates as an ERC-20 token on the Ethereum blockchain and as a BEP-20 token on the BNB Smart Chain, making it accessible on both networks.
Designed to facilitate efficient transactions, EURI is available 24/7 and can be redeemed at any time with no fees. Its compliance with MiCA regulations enhances its credibility, providing users with confidence in its stability and transparency. Additionally, EURI's smart contract is audited by PeckShield, ensuring the reliability and security of its blockchain-based operations.
5. Tether EURt (EURT)
Tether EURt (EURT) is a euro-backed stablecoin developed to simplify the use of traditional currencies in the digital asset space. Operating on multiple blockchains, including Bitcoin, Ethereum, Solana, TRON, and many others, Tether enables seamless cross-chain transactions. EURT was originally launched on the Omni Layer Protocol, a decentralized platform on the Bitcoin blockchain that supports the creation of digital assets, allowing each Tether EURt token to be backed 1:1 with the Euro. Over time, Tether has expanded to other blockchains like Algorand, Avalanche, Polygon, and Tezos, enhancing the stability and interoperability of its tokens across networks.
Transparency is a core principle for Tether, with all tokens pegged at a 1:1 ratio to a corresponding fiat currency and backed 100% by Tether's reserves. Tether uses Proof of Reserves (PoR), publishing daily reports to verify that the fiat currency reserves match the tokens in circulation. This approach fosters trust by ensuring that each token is fully backed, a key feature that empowers users to conduct transactions using a stable digital currency across various platforms.
MiCA compliance overview for euro-backed stablecoins
Markets in Crypto-Assets Regulation (MiCA) is a European Union regulatory framework aimed at ensuring consumer protection, financial stability, and transparency in the digital asset market. MiCA sets standards for stablecoin issuers, focusing on reserve transparency, legal compliance, and risk management to protect consumers and support market integrity. Compliance with MiCA is essential for building trust in digital currencies, as it ensures that stablecoin issuers adhere to strict guidelines that enhance their security, transparency, and reliability.
STASIS EURO (EURS) and MiCA Compliance
STASIS EURO (EURS) is fully regulated within the European Union and adheres to MiCA’s rigorous standards for financial transparency and consumer protection. STASIS maintains daily statements, quarterly verifications, and annual audits conducted by BDO, a reputable accounting firm. These transparency measures align with MiCA’s emphasis on reserve verification and consumer confidence. By operating on multiple blockchains and incorporating bridges like Arbitrum and Gnosis Chain, EURS is accessible across various platforms, meeting interoperability and accessibility standards crucial under MiCA guidelines.
EURC (EURC) and MiCA Compliance
EURC, issued by Circle, is designed to meet MiCA requirements and is anticipated to be fully MiCA-compliant by mid-2024. Circle’s approach includes maintaining full reserves in euros, safeguarded within regulated financial institutions in the EEA. Circle undergoes monthly attestations by a Big Four accounting firm, adding an extra layer of transparency in line with MiCA’s demands. With planned future support for the Cross-Chain Transfer Protocol (CCTP), Circle’s EURC is positioned to be one of the most interoperable euro stablecoins, aiming to meet MiCA’s standards for secure and cross-border compatibility in digital assets.
Anchored Coins (AEUR) and MiCA Compliance
Anchored Coins (AEUR), while regulated within Switzerland under the self-regulatory organization VQF, aligns closely with MiCA’s requirements, offering stable backing through euros held in reserve accounts with Swiss institutions FlowBank SA and Swissquote Bank SA. Anchored Coins adds a layer of security through a bank guarantee, ensuring that users’ funds are accessible even in case of issuer insolvency. Although not directly under MiCA, AEUR’s transparent reserves and compliance with Swiss law align with MiCA’s core objectives, making it a stable, compliant choice for users within Europe.
Eurite (EURI) and MiCA Compliance
Eurite (EURI) is one of the first euro-backed stablecoins fully compliant with MiCA within the European Economic Area. Issued by Banking Circle S.A. under the supervision of the Luxembourg CSSF, EURI adheres to stringent MiCA standards for consumer protection and reserve transparency. Funds backing EURI are held in segregated accounts, and its smart contract is audited by PeckShield, both of which meet MiCA’s requirements for stability and accountability. EURI’s bankruptcy-remote structure further strengthens its security, making it a reliable euro-backed digital asset under MiCA regulation.
Tether EURt (EURT) and MiCA Compliance
Tether EURt (EURT) follows a Proof of Reserves (PoR) model, with daily reports to verify that euro reserves match circulating tokens. Although Tether operates independently of MiCA-specific regulations, it incorporates essential features like reserve transparency and regular audits, aligning closely with MiCA’s principles. By expanding across multiple blockchains and maintaining a 1:1 reserve ratio with fiat currency, Tether demonstrates its commitment to providing secure, stable digital assets that meet MiCA's underlying objectives of consumer trust and financial stability.
Euro stablecoins comparison table
Conclusion
Euro stablecoins are gaining momentum as more users and institutions within Europe adopt them for stability and convenience. While they currently don’t match the popularity of dollar-pegged stablecoins, they serve a valuable role for those dealing in euros. Each of the stablecoins mentioned above brings unique features to the market, and as the crypto ecosystem matures, we may see even more growth and innovation in euro-pegged digital assets. Whether for trading, DeFi, or as a hedge against volatility, euro stablecoins provide a diversified stable asset option for European and international crypto users alike.
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