The Rise of Euro, Yen, and Regional Stablecoins: A Shift in Crypto’s Currency Landscape
Stablecoins have surged to $307 billion in total value by October 2025, a dramatic leap from $28 billion five years prior. Yet, euro-backed stablecoins represent a mere $500 million of this market—just 0.16%. This disparity persists despite the European Union's economy eclipsing that of the United States. The dominance of dollar-pegged stablecoins, accounting for 99% of the market, is now being challenged by regulatory tailwinds and demand for digital versions of local currencies.
Forex markets underscore the incongruity: non-USD currencies comprise over 40% of daily $7.5 trillion forex trading volumes but less than 1% of blockchain transactions. Businesses face inefficiencies, such as a Brazilian firm paying a Japanese supplier via crypto, forced to double-convert through USD and incur redundant fees. European companies, meanwhile, grapple with unnecessary exchange rate risks by holding dollar-denominated tokens for blockchain payments.
Institutional momentum is building. Nine major European banks, including UniCredit and ING, plan to launch a euro stablecoin by late 2026. Japan’s Monex is advancing a yen-backed token, with regulators greenlighting the first wave of approvals. The era of dollar hegemony in crypto may be nearing an inflection point.
