As an analyst, I’ve been tracking the stablecoin market, and it’s interesting to see how dominant dollar-backed options remain. Currently, they represent almost all – around 99% – of the total stablecoin supply. Other currencies are struggling to gain traction, only accounting for about 0.24% of the market share. It’s a clear indication of the continued preference for dollar-based stability in this space.
Summary
- Non-dollar stablecoins grew from $261 million in 2021 to $771 million by April 2026, but their market share has actually declined.
- Dollar stablecoin issuers benefit from $15.4 billion in tokenized US Treasuries, a reserve advantage non-dollar rivals cannot match.
- Qivalis, a pan-European banking consortium, tripled its membership to 37 banks in May 2026 but a euro stablecoin launch is not expected until late 2026.
In late 2025, the European Central Bank reported that nearly all stablecoins in use (around 99%) are pegged to the U.S. dollar. While the amount of stablecoins not based on the dollar has increased significantly over the past five years, their portion of the overall market has actually decreased.
In April 2026, the total value of stablecoins not based on the US dollar – including euros, Canadian dollars, yen, Singapore dollars, and others – reached $771 million. This is a significant increase from $261 million in May 2021, but these non-USD stablecoins still only represent a small portion of the overall market, accounting for just 0.24%.
The difference isn’t due to a lack of rules, but rather how things are built. Companies issuing dollar-based stablecoins can easily connect to US Treasury markets for backing, and there’s currently about $15.4 billion worth of tokenized US government debt available on the blockchain. However, tokenized bonds from governments outside the US only total around $1.4 billion.
As a crypto investor, I see that the benefits of using the dollar – specifically its higher yields and easier access to liquidity – let dollar-based projects invest in growth, like building partnerships and expanding their reach, in ways that projects using other currencies just can’t compete with. It’s a real advantage for them.
Why the European push is not closing the gap
From my perspective, this infrastructure is absolutely critical for Europe to not only stay competitive in the global digital landscape, but also to maintain its independence and control over its own digital future. As Qivalis’ chairman Howard Davies pointed out, it’s about ensuring we can thrive globally on our own terms.
As an analyst tracking the digital currency space, I’ve been following Qivalis, the European banking group. They’ve seen significant growth recently, expanding to include 37 banks in 15 different countries as of May 2026 – more than tripling their initial membership. However, while their plans for a euro-backed stablecoin are still in development, we don’t anticipate a launch until the latter half of 2026.
Earlier this year, another group of twelve European banks chose Fireblocks to help them create a euro stablecoin that meets new European regulations (MiCA). Nine banks, including UniCredit and ING, are planning to launch a similar project by the second half of 2026. While several regulated euro stablecoin initiatives are underway, none have yet become widely used or have significant trading volume.
What it would take to shift the balance
The biggest challenge isn’t rules and regulations. The real issue is that most traditional currencies aren’t widely used internationally, making it difficult for them to back a stablecoin that could be used globally. Only a few currencies have enough reach to do that.
Only a handful of currencies – like the US dollar, euro, Japanese yen, British pound, and Swiss franc – have robust enough exchange markets to easily facilitate international cryptocurrency transactions.
S&P Global Ratings estimates the euro stablecoin market could expand dramatically, potentially reaching 1.1 trillion euros by 2030 from its current size of around $895 million. However, achieving this growth depends on increased use by institutions, clear regulations, and the development of robust financial infrastructure – something it took dollar stablecoins years to establish.
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2026-05-20 21:56