Euro stablecoins will reach €1.1bn by 2030, says S&P Global Ratings

Core Insights - The Eurozone is expected to see significant growth in euro-pegged stablecoins, with projections indicating an increase from €650 million to €1.1 billion by 2030, equivalent to $768 million to $1.2 billion [1] - The growth of digital assets will primarily be driven by the tokenization of real-world assets rather than payments, presenting both opportunities and threats to traditional banks [2] - Major banks and financial institutions are rapidly adopting stablecoin technology in response to clearer regulations, with the stablecoin market currently valued at $305.2 billion [3] Group 1: Market Growth and Projections - S&P Global Ratings anticipates that top European banks will issue euro-pegged digital tokens this year, contributing to a substantial market increase [1] - The report highlights that the tokenization of asset classes can enhance efficiencies in capital markets and improve access for investors [5] - The Eurozone is positioned to catch up in stablecoin adoption due to the regulatory framework provided by the EU's Markets in Crypto-Assets regulation [6] Group 2: Industry Dynamics and Adoption - Established banks are recognizing the potential revenue opportunities from stablecoins while also facing competition from non-bank platforms [2] - The US is currently leading in the tokenization of assets, with major firms like BlackRock advocating for its future in finance [4] - Eleven European banks are collaborating to launch a euro-denominated stablecoin, expected to be released this year [7]