Paxos Says European Stablecoin Market Is Moving From Pilots
to Real Business
Europe's stablecoin market may be entering a new phase as major financial institutions move from experimentation toward real-world business applications, according to Devan Moorthy, European Business Development Lead at Paxos.
Speaking at the Amsterdam Fintech Event 2026, Moorthy said regulation is increasingly being viewed by financial institutions as an enabler rather than an obstacle. He pointed to growing requests for information and proposals from major European companies interested in stablecoin infrastructure.
Paxos Sees Institutions Moving Beyond Proofs of Concept
Moorthy said the largest institutions in Europe are increasingly looking beyond pilot programs and proof-of-concept projects.
“The largest institutions across Europe are ready to invest in stablecoins and in actual stablecoin use cases.”
He said the focus is shifting toward integrating stablecoins into existing business lines and generating real transaction volume, rather than simply testing the technology.
This could include applications across payments, banking, fintech and other financial services.
Regulation Seen as an Asset
One of the strongest messages from the Paxos executive was the changing attitude toward regulation.
Moorthy said participants on the Amsterdam panel largely viewed regulation as a positive development, because clear rules give large institutions a framework for approving and deploying stablecoin products.
He argued that before regulations such as the EU's Markets in Crypto-Assets Regulation (MiCA) became applicable, financial institutions could be interested in stablecoins without having the regulatory certainty needed to move forward commercially.
Why This Matters
For large banks and payment companies, regulatory clarity can help:
- Establish compliance requirements
- Obtain internal approval for new products
- Work with regulated infrastructure providers
- Build stablecoin payment services
- Integrate digital assets into existing financial products
Paxos Positions Itself as Infrastructure
Moorthy also explained Paxos' strategy of operating as neutral infrastructure rather than directly serving end customers.
According to Moorthy, Paxos does not touch the end client, allowing banks, payment companies and fintechs to build their own stablecoin products on top of its infrastructure.
In Europe, Paxos issues USDG through Paxos Issuance Europe under supervision of Finland's financial regulator and within the MiCA framework, according to CryptoFocus.
This infrastructure model allows institutions to maintain their customer relationships while using regulated stablecoin issuance and reserve-management services.
RFPs Could Signal a Shift in Demand
One of the clearest indicators cited by Moorthy is the increase in RFPs and RFIs from major European companies.
An RFI, or request for information, generally indicates that an organization is evaluating potential solutions. An RFP, or request for proposal, typically represents a more advanced procurement process.
Moorthy said Paxos is receiving increasing numbers of both from major European names, adding that he expects to see “very exciting things” emerge in 2027.
The companies involved were not publicly identified.
Stablecoin Adoption Is Becoming a Full-Stack Industry
The Amsterdam Fintech Event panel brought together representatives from Paxos, Visa, Bitvavo and Mesh, covering different parts of the stablecoin ecosystem.
Moorthy described the combination as spanning almost every layer of the stack — from payments and retail access to fintech infrastructure and stablecoin issuance.
The broader Amsterdam Fintech Event is being held on October 7–8, 2026, with stablecoins, tokenization and digital assets among its major themes.
Europe's Stablecoin Market Remains Relatively Small
Despite growing institutional interest, the euro stablecoin market remains much smaller than the dollar-based market.
Data cited by CryptoFocus from DefiLlama showed approximately €798 million in combined supply across 26 euro-pegged stablecoins on September 28. Dollar stablecoins, by comparison, had a combined market supply above $313 billion.
Circle's EURC and Société Générale's EURCV accounted for a large share of the euro-stablecoin market at that time.
2027 Could Be a Key Year
Moorthy's comments suggest the next stage of European stablecoin development could be measured less by the number of pilots and more by commercial deployment.
The important question is whether major institutions actually integrate stablecoins into products customers already use, such as:
- Banking applications
- Payment services
- Cards
- Merchant payouts
- Cross-border payments
- Treasury operations
If those integrations begin reaching meaningful scale, stablecoins could move from a specialized digital-asset product toward a more visible component of mainstream financial infrastructure.
What to Watch
The next major indicators for European stablecoin adoption include:
- New MiCA-compliant stablecoin launches
- Bank and fintech stablecoin partnerships
- Commercial RFPs turning into production products
- Euro stablecoin supply growth
- Cross-border payment volumes
- Merchant and consumer adoption
- Institutional use of stablecoin settlement
The Amsterdam Fintech Event's focus on stablecoins and tokenization also shows how closely traditional financial institutions are now examining blockchain-based financial infrastructure.
FAQ
What does Paxos expect for European stablecoins?
Paxos' Devan Moorthy said major European institutions are moving beyond pilots and exploring how stablecoins can be integrated into actual business lines.
Why does Paxos view regulation positively?
Moorthy said clear regulation gives large institutions the framework and authority needed to move from interest and experimentation toward commercial deployment.
What could happen in 2027?
Moorthy expects some of the institutional interest currently appearing through RFIs and RFPs to translate into new stablecoin products and use cases during 2027.
How large is Europe's euro stablecoin market?
DefiLlama data cited by CryptoFocus showed approximately €798 million in euro-pegged stablecoins as of September 28, 2026.
Final Take
Paxos' Devan Moorthy says Europe's stablecoin conversation is moving from “Can this technology work?” to “How do we integrate it into real financial businesses?”
The combination of clearer regulation, institutional procurement activity and infrastructure providers such as Paxos could create a new phase of stablecoin adoption. But the next test will be whether today's RFPs and pilot projects translate into measurable transaction volume and products used by mainstream customers in 2027.
