Citi Forges Historic Alliance with EU Lenders to Launch MiCA-Compliant Euro Stablecoin

Global banking giant Citi shatters traditional finance barriers by partnering with European lenders to launch a groundbreaking euro-denominated stablecoin—fully compliant with the EU's landmark MiCA regulations.

The Regulatory Game-Changer

This isn't just another digital token—it's the first major institutional stablecoin designed specifically to meet Europe's rigorous Markets in Crypto-Assets framework. Citi's move signals that traditional finance finally understands you can't fight regulatory progress—so you might as well profit from it.

Institutional Adoption Accelerates

The collaboration represents the most significant bridge yet between legacy banking systems and decentralized finance. While crypto purists might scoff at another "permissioned" stablecoin, institutions clearly prefer their digital assets with government stamps of approval—and the compliance paperwork to prove it.

Because nothing says financial innovation like making sure every transaction gets properly taxed and monitored. The future of digital euros is here—and it comes with all the paperwork you'd expect from traditional finance finally catching up.

Euro stablecoin usage remains low

While the Euro has been tokenized by multiple issuers, especially Circle, those tokens have a relatively low supply and limited usage. In total, all EUR-based stablecoins have a market cap of around $561M, with about half the value locked in Circle’s EURC. 

The supply of Euro-based stablecoins is relatively low compared to dollarized assets, which now exceed $300B. Demand for stablecoin payments is growing, as estimates see up to $50T in annual payments passing through stablecoins by 2030. 

As of 2025, stablecoins capture around 1% of consumer spending, expected to grow as high as 25% if the assets are regulated and adopted. New regulations in the USA and Europe have not killed stablecoins, and have created growth as there are clearer rules on issuance. Stablecoin issuers are also creating demand for US T-bills, a cash-like asset used as collateral. 

EURC still grows on DeFi integration

EURC tokens showed significant organic growth in the past year, up to over 260M tokens. The main use cases of stablecoins are for trading on centralized markets, as well as for DeFi purposes. EURC has participated in various DeFi apps, including yield and lending pools. 

EURC was recently integrated with Stellar, another network used for a crossover between traditional and on-chain finance. The token was among the fastest-growing stablecoins in the past week. 

The shift to Euro-based tokens was also tied to the recent weakness in the dollar position, using EURC as chain-based exposure to the stronger currency. The inflow of funds into EURC reflects the overall strong position of Europe as a crypto adoption hub.

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