Experts at the European Central Bank (ECB) say that the impact of stablecoins on financial stability in the eurozone is currently minimal, as stablecoins are mostly used within the crypto ecosystem strictly regulated under the MiCA framework.
ECB analysts Senne Aerts, Claudia Lambert, and Elisa Reinhold released a preliminary review of financial stability in the EU, taking a detailed look at the growing stablecoin market. They concluded that, at this stage, stablecoins pose low risks to financial stability in the eurozone.
According to the authors, despite the record market cap of stablecoins, surpassing $300 billion in Q3 2025, along with rapid sector growth and the dominance of dollar-pegged stablecoins, their impact on EU financial stability remains low for several reasons, including:
- stablecoins remain instruments used almost entirely within the crypto ecosystem;
- strict MiCA regulation prevents stablecoins from creating meaningful risks for the EU banking system or financial markets;
- euro-denominated stablecoins have limited adoption.
The analysts also emphasize that the primary role of stablecoins is to serve crypto trading rather than the real economy. Data shows that around 80% of global trading volume in the crypto market is conducted via stablecoins. Over 70% of stablecoin transactions are cross-border, yet only about 0.5% of their total volume involves the retail segment.
According to the analysis, the low penetration of euro-pegged stablecoins protects the EU from potential risks related to depegging or mass redemptions. The authors note that since roughly 99% of stablecoin market capitalization consists of dollar-backed assets, any depeg or large-scale sell-offs would most likely affect short-term U.S. Treasuries. The eurozone, in their view, would remain fully insulated due to minimal connections between stablecoin reserves and European financial markets.
Risks of deposit outflows for banks are also considered low, as MiCA prohibits interest payments on stablecoins, limiting their appeal as alternatives to bank deposits. The authors argue that even if some deposits were replaced with stablecoins, the wholesale flow of funds back into the banking system through issuer reserves reduces the likelihood of significant funding instability.
The document highlights regulatory arbitrage between jurisdictions as a potential future vulnerability for the EU. Risks may arise from multiple issuance; for example, if a stablecoin is issued both within the EU and in a non-EU jurisdiction while remaining interchangeable. In such a scenario, the regulated issuer in the eurozone might lack sufficient reserve assets to fulfill redemption requests. However, the analysts state that the ECB is already developing additional mechanisms to control market access.
Despite the report’s overall conclusion, the analysts stress that the sector’s rapid growth requires close monitoring, as stablecoins could find new use cases and increase financial stability risks in the future.
Recently, Deutsche Börse Group, Europe’s largest financial market operator, integrated the USDCV and EURCV stablecoins into its infrastructure, which already supports EURC and USDC.
