Recently, I’ve been thinking about an interesting phenomenon—why is the demand for euro stablecoins so high among European investors? I believe there’s a very easily overlooked issue behind this.

The early stablecoin ecosystem was basically monopolized by the US dollar; everyone was using products like USDT and USDC, which are dollar-pegged. But this brings a problem: if European users want to avoid crypto market volatility while maintaining the euro’s purchasing power, using dollar stablecoins isn’t actually the best choice. This market gap has existed until Stasis launched EURS in 2018, which truly filled this void. A 1:1 euro reserve backing, this design idea is very clear.

Interestingly, Tether actually launched EURT much earlier, but EURS later became the more popular choice in the European ecosystem. What does this indicate? It shows that the market cares not just about who acts first, but about who truly understands user needs.

From an application perspective, the value of euro stablecoins is actually underestimated. They are not just a hedging tool but also the infrastructure of Europe’s DeFi ecosystem. Imagine lending protocols, liquidity mining, and other DeFi products operating with euro stablecoins—how attractive would that be for European users? Cross-border transfers are the same; using euro stablecoins is several orders of magnitude faster and cheaper than traditional banks.

What concerns me most is that the European Central Bank has been seriously studying digital euro over the past two years. This isn’t just a vague concept but a real policy direction. Once the digital euro is implemented, the entire euro stablecoin ecosystem could enter a new phase. Whether through competition or integration, this track will definitely become more dynamic.

More and more financial institutions are now paying attention to this field. Euro stablecoins are moving from the fringe to the mainstream, and I believe this process has only just begun. If you’re following the European crypto market, this euro stablecoin thread is definitely worth a deep dive.