Euro Stablecoins at 1% of Supply Despite €711M High — SkimNews
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- Ryan Connor of RockawayX reports the dollar leads the euro about 3 to 1 in the offchain economy but more than 300 to 1 onchain, with all euro-pegged stablecoins summing to €711 million, under 1% of total stablecoin supply.
- Euro vault AUM across DeFi grew from roughly €12 million a year ago to €135 million today, but still represents only 2.4% of total vault AUM.
- Hedging costs of about 1% to convert USD exposure back to EUR turn a 3.2% dollar APY into a 2.0% net yield against 3.0% Euribor, leaving the market-weighted DeFi lending rate below the EUR risk-free rate in roughly 97% of weeks in 2026.
- The first euro stablecoin wave peaked near €630 million in 2022, led by EURT, which wound down due to lack of MiCA compliance; the current wave has doubled from lows to its €711 million all-time high, dominated by MiCA-regulated electronic-money tokens like EUROP and EURCV.
- Schuman and SG Forge are issuing regulated euro stablecoins, while Obligate is tokenizing euro trade finance and Midas brought Fasanara's euro credit strategy onchain; RockawayX is curating euro vaults on Kamino and Morpho to supply the leverage leg.
- Connor traces the gap to path dependency—stablecoins were built to settle USD-priced crypto pairs—and the absence of euro-denominated DeFi infrastructure, particularly yield-bearing collateral and native euro lending markets.
Why it matters: European asset managers and corporate treasuries have been structurally excluded from DeFi by roughly 1% FX hedging costs that erase euro yield advantages over Euribor. With MiCA-regulated supply at an €711 million all-time high and euro vault rails now launching on Kamino and Morpho, the infrastructure that locked euro capital out is being actively rebuilt.
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