Revolut launches EURR stablecoin; analysts divided

Revolut introduced EURR, an on-chain token pegged one-to-one to the euro, on Aug. 26. The company said it will roll out stablecoins tied to other currencies and will remove Tether’s USDT from its platform by Aug. 31 after USDT was delisted across Europe when Tether did not obtain a license under the EU’s Markets in Crypto-Assets rules (MiCA).

EURR is designed to mirror the euro on blockchain networks and allow users to hold and transfer euro-denominated digital tokens. Revolut said the product is part of its expansion into tokenized currencies.

Analysts offered different views on demand for euro-pegged stablecoins. Critic Scott Melker argued that demand for euros outside Europe is weak, saying ‘Nobody wants euros anywhere outside of Europe, and they don’t really want them there either; they’re just forced to use them.’ Former Bridge CEO Zach Abrams noted that tokenization of financial assets is likely to increase over the next five years, beginning with currencies, then treasuries and stocks, and that non-dollar stablecoins could be used for local settlement, collateral and foreign-exchange needs.

USD-pegged stablecoins remain the largest segment, accounting for more than 90% of supply and transactions and led by USDT and USDC. Recent data show USD stablecoins reached nearly $7 trillion in 30-day transaction volume, up 22% from the prior period. Non-USD stablecoins registered about $15 billion in 30-day volume and grew 137% over the same window.

Europe accounted for roughly 26% of global stablecoin transaction volume, behind North America and ahead of Asia. Euro-pegged tokens are mostly issued by private firms. Circle’s EURC is the largest euro stablecoin, with about $455 million in supply, more than half of the roughly $772 million total for euro-pegged tokens.

Regulatory developments include the EU’s plan to introduce a digital euro by 2029 and the application of MiCA rules to private stablecoins. How a central bank digital currency will affect private euro stablecoins has not been determined.

Market participants are monitoring Revolut’s EURR, other euro-pegged tokens and broader stablecoin volumes as firms adapt to MiCA and issuers test non-dollar products.