Dollar Stablecoins Maintain Dominance Over Non-Dollar Counterparts

The global stablecoin market has been largely unchanged in recent years, with dollar-based tokens continuing to hold a significant majority of the supply. According to data from various sources, dollar stablecoins account for approximately 99% of the total market, while non-dollar tokens have only managed to capture around 0.24%. This trend is not new and has been consistent over time.

The issue lies in the lack of liquidity infrastructure outside of the US, which makes it difficult for non-dollar stablecoins to gain traction. The dollar, being a widely accepted currency, has access to deep foreign exchange markets that support cross-border crypto use. This allows dollar-based tokens to plug into US Treasury markets as a reserve base, providing a yield and liquidity advantage over their non-dollar counterparts.

Efforts are underway in Europe to launch euro stablecoins, but progress is slow. Qivalis, a pan-European banking consortium, has expanded its membership to 37 banks across 15 countries, but its euro stablecoin is not expected to launch until the second half of 2026. Another group of twelve European banks has selected Fireblocks for a competing MiCA-compliant euro stablecoin, with nine more banks targeting a similar debut in the same timeframe.

While institutional adoption and regulatory clarity are crucial for the growth of non-dollar stablecoins, building deep liquidity infrastructure is the primary obstacle to overcome. S&P Global Ratings projects that the euro stablecoin market could reach 1.1 trillion euros by 2030, but this would require significant investment in infrastructure and a sustained effort from European banks.