Dollar-pegged stablecoins lose ground in Europe.
EURC gains traction in DeFi, with 15 ESMA issuers accelerating bank custody.
EURC, the stablecoin issued by Circle and backed 1:1 by the euro, recorded an explosive growth of 2,727% in trading volume between July 2024 and June 2025. This advance far exceeds the modest 86% of USDC, another stablecoin from the same issuer, but pegged to the US dollar.
The above follows from the latest report on cryptocurrency adoption in Europe, published on October 16, 2025 by Chainalysis
In the report, the analysis firm on-chain reveals that the Markets in Cryptoassets Regulation (MiCA) has recalibrated the stablecoin market. This fueled the rise of stablecoins anchored to the euro, after the exclusion of tether (USDT) for violating the rules regulatory.
The regulation, which came into effect in December 2024, restricts crypto asset service providers (CASPs) to only regulated stablecoins. With this, EURC—aligned with EU standards—rapidly raises liquidity by displacing non-compliant competitors.
Initially, the volumes of USDC experienced a temporary rally while the platforms adapted to the requirements, but stabilized in March 2025 after the deadline of the European Securities and Markets Authority (ESMA), according to the report.
USDC’s more modest performance largely reflects volume contraction as EURC gained prominence. This shift reveals the complex interplay of regulatory frameworks, market dynamics and geopolitics that shape Europe’s digital asset landscape.
Chainalysis 2025 report for the Europe region.
The document adds that, shortly after, in April 2025, the use of EURC skyrocketed, while Demand for stablecoins pegged to the dollar fell. “This marks a strategic shift towards the euro, influenced by regulations and geopolitics, such as tariff changes in the US,” the report adds.
“This dramatic expansion, albeit from a modest base, demonstrates the potential of local stablecoins aligned with regulation,” the document reads.
Hard data supports this domain, as ESMA registers 15 issuers that manage 25 stablecoins in euros.
For researchers, EURC consolidates ground in a mature market, with transactions reaching a peak of $234 billion in December 2024.
Additionally, financial institutions are accelerating their response. In such a way that banks are launching custody services for cryptocurrency users, as CriptoNoticias recently reported. Payment providers also integrate digital assets.
All of this catalyzes a profound transformation, despite the transition periods until 2026. In this sense, the report highlights: “MiCA promotes market integrity and financial stability, positioning Europe as a global hub for crypto assets.”