XRP Ledger Welcomes MiCA-Compliant EURØP Stablecoin—But Can It Challenge RLUSD and USDC Dominance?

The XRP Ledger just onboarded EURØP, a Euro-backed stablecoin fully compliant with Europe’s MiCA regulations. This move signals Ripple’s ambition to carve a niche in the $150B+ stablecoin market—but skeptics question whether it can dent the duopoly of Tether’s RLUSD and Circle’s USDC.

Proponents argue EURØP’s regulatory clarity gives it an edge in EU markets, while critics point to the chicken-and-egg problem of liquidity. "Another stablecoin entering the thunderdome," quipped a Deutsche Bank analyst, noting that 93% of stablecoin transactions still flow through incumbents.

The real test? Whether institutional players will embrace EURØP for cross-border settlements—or if this becomes another case of crypto’s "build it and they might come" hubris.

Can EURØP compete with legacy stablecoins—USDC & RLUSD?

The new euro stablecoin EURØP aims to capitalize on this opportunity by adhering to MiCA’s stringent rules, including 1:1 liquid reserve backing and transparency reporting. However, its pathway to growth could face stiff competition from Ripple’s RLUSD and Circle’s USDC. Both of these stablecoins comply with MiCA regulations and have already gained traction among European crypto users.

USDC is currently in direct competition with USDT, with it positioned as the second-largest stablecoin in terms of market supply. While USDT has a dominance of 62.26%, USDC holds 24.74% of the total in the stablecoin market cap, which currently sits at $245.9 billion.

Similar to EURØP, RLUSD is also launched on the XRP Ledger, but its peg to the US dollar could prevent users who want their funds to sit in euro denominations. This might be a plus point for EURØP, but Ripple’s legacy and RLUSD’s already-wide market dominance might push it forward across European countries.

At the time of publishing, RLUSD has a total market supply of over 310 million. While the number is quite smaller in comparison with USDT and USDC, its supply is surging rapidly, and given that it is hardly just one year old, the future potential for RLUSD is brighter.

As Europe’s crypto market adapts to MiCA, the next six months will be crucial in determining which stablecoin emerges as the region’s new leader.

Also read: Ethereum’s Market Cap Surpasses Bank of America as Price Hits $2,727