The Growing Potential of Stablecoin Payments in the EU

When stablecoins first appeared, many doubted their longevity. 

Some expected them to fade or face regulatory shutdowns. Instead, stablecoins like USDT have revolutionized access to the US dollar and benefited industries worldwide through utility and convenience.

But what about Europe? Is the EU ready to embrace stablecoins now that they’ve become a cornerstone of global markets? 

Let’s explore the current landscape, adoption trajectory, what the future holds, and how payment processors like CoinGate can help you implement stablecoins into your operations.

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Stablecoins are the next big thing. Sign up for a CoinGate account and start leveraging stablecoins for your benefit.

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Signs of Evolving Stablecoin Landscape in the EU

Recent developments suggest that stablecoins are steadily carving a larger role in Europe’s financial ecosystem. 

We list several developments below that clearly reflect increasing interest from both regulators and industry stakeholders. 

Here are the key indicators:

Implementation of MiCA Regulations

The Markets in Crypto-Assets (MiCA) regulation offers a comprehensive framework for stablecoins in the EU. 

It enhances consumer protection through transparency, stricter policies, and due diligence while enforcing stricter rules on stablecoins to ensure that issuers maintain adequate reserves. 

In order to uphold market integrity, MiCA also implements measures against insider trading and fraud, pushing businesses to strengthen risk management. 

Finally, crypto service providers must obtain licensing from EU regulators and maintain certain compliance standards.

As a result, non-compliant stablecoins like USDT or DAI face delisting, while compliant issuers like Circle have thrived by obtaining an e-money license in France, enabling them to issue USDC and EURC within the EU.

CoinGate is one of those companies that utilize Circle’s stablecoins for its operations and is part of Circle’s Alliance Program.

Growth of Euro-Backed Stablecoins

The rise of euro-backed stablecoins aligns well with MiCA’s regulatory environment. 

Circle’s EURC has become a leader in this space as it shows significant growth in transaction volumes. 

According to data provided by Orbital, a global financial management firm, EURC transfer volume tripled from $7M in December 2024 to $21M in January 2025.

Patrick Hansen, Circle’s EU Strategy Director, highlighted EURC’s rapid growth after MiCA’s implementation in July 2024, noting it became the largest Euro stablecoin by market cap by October 2024, with its supply rising over 2.5 times in four months, suggesting a significant increase in dominance, potentially from a modest share to a leading position. 

USDC is experiencing a similar growth, with transfer volumes growing from $12B in December 2024 to $16B in January 2025.

The growing preference for euro-denominated stablecoins is becoming evident, which may eventually challenge the dominance of US dollar-pegged counterparts like USDT.

Until now, the USDT dominance was clear. Based on our data, USDT payments in particular dominated nearly all our supported networks in 2024. On BSC, USDT payments account for 63.76% of total, on Tron – 70.46%, and on Ethereum – 20.79% of all payments made through CoinGate in H1 2024. 

Meanwhile, USDC payments in Q2 ’24 increased by 24% compared to Q1’24 and an impressive 94% year over year. Learn more.

Integration with Traditional Finance

In early 2025, the European Central Bank (ECB) made a landmark decision to allow non-bank payment service providers (PSPs)—including stablecoin issuers regulated under MiCA—direct access to Eurosystem payment systems like SEPA (Single Euro Payments Area) and TIPS (TARGET Instant Payment Settlement). 

Previously, only banks and certain financial institutions could settle transactions directly through these systems. 

First and foremost, this move enhances efficiency as stablecoin issuers can now process euro transactions in real-time or near-real-time, bypassing intermediaries like correspondent banks, which reduces costs and delays.

It also boosts legitimacy because direct access signals trust from regulators, aligning stablecoins with traditional payment rails and making them more appealing for everyday use, such as cross-border remittances or merchant payments.

One example is a MiCA-compliant issuer of a euro-backed stablecoin, like Circle with EURC, which can now settle transactions directly via TIPS, enabling instant payments across the EU and rivaling traditional bank transfers.

Rising Institutional Stablecoin Adoption

Building on the regulatory clarity provided by MiCA, major financial institutions are now engaging with stablecoins as they explore innovative use cases and seek to enhance operational efficiency:

• Societe Generale-FORGE, a subsidiary of the Societe Generale Group, has developed a MiCA-compliant stablecoin, EUR CoinVertible (EURCV), and plans to deploy it on the XRP Ledger, alongside existing deployments on Ethereum, Solana, and Stellar, to enhance payments and settlements for institutional clients.
• DWS, a German asset manager, has partnered with Galaxy Digital and Flow Traders to form AllUnity, which plans to issue an EU-regulated, MiCA-compliant Euro stablecoin by mid-2025. This stablecoin aims to integrate digital assets into traditional financial services, with potential applications including IoT-driven payments and broader institutional use.
• Membrane Finance, a Finnish fintech firm, introduced EUROe in February 2023, marketing it as Europe’s first EU-regulated, full-reserve stablecoin under its EMI license. It operates on multiple blockchains, including Ethereum and Solana, with Solana being a recent addition by late 2023 or 2024.
• DECTA (Ireland) and Next Generation (France) launched EURT, a MiCA-compliant Euro-pegged stablecoin, on August 12, 2024. Often referred to as DigiEuro, it operates on the Stellar network and is planned for deployment on three additional blockchains.
• Crypto.com, a Singapore-based crypto platform, has been approved under MiCA as one of the 10 initial stablecoin issuers in the EU, announced in February 2025. While specific details about its Euro-pegged stablecoin are still emerging, Crypto.com’s approval suggests it has launched or plans to launch a MiCA-compliant Euro stablecoin. The platform’s focus on institutional clients, offering trading pairs, custody, and payment solutions, indicates this stablecoin will likely support cross-border payments and crypto-fiat bridging for European businesses.

Should EU Merchants Adopt Stablecoin Payments?

Now let’s say you are a merchant in the EU and want to use a cryptocurrency payment processor to accept crypto payments or send cryptocurrencies like stablecoins to business partners, pay salaries, or manage other transactions.

Is there any sense in doing this, given all the developments in stablecoins and regulatory frameworks?

Given the context and progress in the EU regarding stablecoins and cryptocurrency payment processors, here are some considerations and arguments for why it might make sense for an EU merchant to adopt such systems:

Key Stablecoin Benefits for Merchants

1. Lower Transaction Fees: Crypto payments often cost less than traditional banking, especially for international transactions. CoinGate, for example, offers fees as low as 1%, making it cost-effective for cross-border commerce.
2. Faster Transactions: Stablecoins enable near-instant settlement, ideal for time-sensitive payments.
3. Market Expansion: Accepting cryptocurrencies can attract new customers who prefer digital currencies, especially as euro-backed stablecoins gain traction.
4. Regulatory Confidence: MiCA’s framework ensures legal compliance, increasing trust among partners and customers.
5. Operational Efficiency: Stablecoins streamline payroll and B2B payments, reducing currency conversion complexities and transfer delays.

Challenges to Consider

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1. Volatility: While stablecoins address this, other cryptocurrencies remain unstable.

How CoinGate tackles the challenge: Our payment processing service allows for a hands-off approach to crypto and stablecoin payments. Merchants can accept payments in any cryptocurrency, which are instantly converted to EUR/USD/GBP at the current exchange rate and paid out to a bank account. This eliminates volatility risks.

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2. Adoption Rate: The crypto ecosystem is still growing, and traditional payment methods dominate.

How CoinGate tackles the challenge: We offer user-friendly payment tools that are efficient and intuitive, making the transition from traditional payment rails seamless and more effective.

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3. Regulatory Shifts: Although MiCA provides clarity, potential policy changes could impact operations.

How CoinGate tackles the challenge: Our team stays two steps ahead of potential regulatory changes, leveraging our experience to adapt swiftly, just as we have done in the past.

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4. Technical and Security Concerns: Managing digital assets requires robust security measures.

How CoinGate tackles the challenge: CoinGate implements all required security measures mandated by regulations and goes beyond to ensure the safety of digital assets. With a proven track record of zero incidents, we prioritize reliability and trust.

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For businesses aiming to tap into the growing stablecoin market, starting small and leveraging compliant solutions like CoinGate can help navigate the landscape with ease. 

Stablecoins offer a unique blend of stability, efficiency, and innovation, making them a promising tool for EU merchants.

Conclusion

The EU’s stablecoin market is poised for growth, driven by regulatory clarity, institutional adoption, and rising demand for euro-backed options. 

For merchants and institutions alike, embracing this trend can unlock new opportunities, improve efficiencies, and expand market reach. 

With solutions like CoinGate, the transition to stablecoin payments is both accessible and advantageous. 

Sign up for a CoinGate account now and take the first step towards integrating stablecoins into your business.