Stablecoin activity across Europe expanded significantly through 2025, even as stricter regulatory standards reshaped the market. Onchain data shows that more than one hundred thirteen million stablecoin transactions were processed during European trading hours over the year, excluding December, marking a sharp increase from the prior year. Usage accelerated early in the year and remained elevated even after volumes cooled from initial peaks. This sustained activity places Europe among the most active regions globally for stablecoin usage. Ethereum and Solana networks accounted for the majority of transactions, reflecting their role as primary settlement layers. Despite new compliance requirements, stablecoins continued to function as a core liquidity tool across exchanges, payments, and onchain transfers, underscoring their importance in Europe’s digital asset ecosystem.
The expansion unfolded alongside the implementation of the Markets in Crypto Assets framework, which imposed tighter controls on issuance, oversight, and the use of incentives such as yield payments. These measures were designed to reduce systemic risk and strengthen consumer protection, yet they did not reverse adoption trends. Stablecoins still represent close to eighty percent of trading volume on centralized exchanges in Europe, serving as the main bridge between fiat currencies and crypto assets. Market participants continue to rely on them for settlement efficiency and price stability, particularly during periods of volatility. The persistence of high usage levels suggests that demand is driven more by functional utility than by regulatory arbitrage, with traders and institutions adapting operations rather than exiting the market.
Regulators have continued to monitor these developments closely. The European Central Bank has highlighted potential risks linked to deposit outflows, especially if stablecoins were to offer returns comparable to bank products. At the same time, parts of the traditional banking sector are advancing their own solutions. A consortium of nine European banks is developing a euro denominated stablecoin designed to comply fully with current regulations and support cross border payments with continuous settlement. The project, known as Qivalis, is expected to launch in the second half of 2026, signaling that regulated institutions see stablecoins as an integral part of Europe’s future payments infrastructure rather than a passing trend.
