Europe is playing catch up to close a yawning gap with dollar-dominated stablecoins, as advancements in blockchain technology, privacy protocols and rising demand for tokenized assets by institutions are driving the value of euro-pegged tokens to as much as €1.1 tn ($1.3tn) by 2030.
Euro-Backed Stablecoin Value Could Hit €1.1tn by 2030: S&P Global Ratings
4 February 2026 - 09:00 CET
“Institutional adoption of tokenized assets will be the primary contributor, as these assets require digital settlement though a cash-like mechanism,” a report dated 3 Feb by S&P Global Ratings said. Euro-backed stablecoins currently account for a minuscule 0.2% of the total stablecoin market.
Entering Europe finance mainstream
But in just four years, S&P Global forecast the total value of euro-pegged stablecoins could surge to between €25bn and €1.1tn (equivalent to 0.1% to 4.2% of eurozone banks’ overnight deposits), up from about €650mn currently. “Stablecoins are poised to enter the mainstream of European finance in 2026,” the report said.
US dollar-pegged stablecoins Tether (USDT) and Circle (USDC) meanwhile account for 93% of the total stablecoin market capitalization, according to TRM, accelerated by the passage of the GENIUS Act passed by Washington in July 2025. The dollar-pegged stablecoins had a combined market value of $310bn at the end of 2025, S&P Global noted.
Fast follower benefits
Commenting on what it acknowledged is a “stark” disparity, the financial research firm said that it believed that European banks could be helped by “a fast-follower advantage, underpinned by the clear regulation provided by Markets in Crypto Assets Regulation (MiCAR) and momentum in stablecoin adoption.”
Over the past year, stablecoins have emerged from a niche crypto trading tool to become one of the world’s largest settlement networks, eclipsing legacy systems. Total stablecoin transaction volumes jumped 72% last year to a record $33tn, based on data from Artemis Analytics and cited by Bloomberg.
The data places stablecoin throughput on a scale that now rivals or exceeds major global card networks but operates largely outside the traditional banking system.
A dozen banks to take the plunge
S&P Global’s report says European banks and affiliated companies are expected to issue their own euro-pegged stablecoins, noting that a consortium of 11 European banks has said it plans to launch a euro-pegged stablecoin by the second half of 2026, through Qivalis, a Netherlands-based registered issuing entity.
“We anticipate that more European banks could join the initiative, enhancing an already powerful distribution network and access to about 150mn clients in Europe, which will be a key factor for success, given that distribution and positive network effects are crucial in the payment space,” the report said.
Qivalis is expected to secure an electronic money institution (EMI) license in the first half of 2026 to ensure MiCAR compliance and plans to release a MiCAR-mandated whitepaper, detailing the rationale and use cases for the stablecoin, which is yet unnamed, S&P Global said.
Behind other jurisdictions
Europe isn’t just trying to close the gap with the US. Jurisdictions like Japan, Singapore, Hong Kong and the United Arab Emirates have rolled out stablecoin regulations, while the UK and South Korea are developing their frameworks. For the EU, the assurance provided by MiCAR has spurred institutional adoption of tokenized investments and banks' interest in issuing stablecoins to support settlement.
Banks are motivated by the dual forces of threats and opportunities, the report notes. The explosive growth of the product has pushed larger banks to embrace stablecoins in order to avoid being disintermediated by nimbler non-bank platforms.
New revenue from integrated payments
S&P Global expects European banks and bank-affiliated entities to issue euro-backed stablecoins this year to meet demand for the rise in tokenization of Real World Assets for investment and the use of stablecoins for retail and corporate payments, which could “provide new revenue streams for European banks”.
With the ability of stablecoins to blend into existing financial plumbing, multi-money solutions will emerge, and programs like the European Payment Initiative may fuel the boom if tokenized, wallet-based, payment solutions are adopted.
Favoring wholesale CBDCs in Europe
The research and ratings firm said that it expects regional divergence in how banks and financial services companies use stablecoins, deposit tokens and wholesale CBDCs (wCBDCs) for tokenized treasury. In the US, regulated stablecoins and deposit tokens offered through bank platforms are likely to be used for treasury activities, while in the eurozone, a wCBDC may become the preferred settlement tool for treasury activities, it said.
Project Appia, a European tokenized financial ecosystem plan, also bears watching. The plan aligns with a broader target to develop a Savings and Investment Union of the EU. The ECB plans full operationalization of Project Appia by year-end 2028, with a launch paper expected in mid-2026, S&P Global said.
Other options for RWA settlements
Among the questions about the EU adoption of stablecoins include whether the tokens will be used as the settlement tool for RWA transactions, given that wholesale CBDCs or other digital settlement assets, such as tokenized deposits, may be other options.
“As for traditional day-to-day payments; bank clients will ultimately choose their preferred payment method based on user experience, the relative and perceived risk of tokenized money compared to traditional payment tools, and on the cost benefits of different payment options,” the report said.
