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10 Best USDT Stable Coin Alternatives In Europe

Posted by Nick Jonesh 28/12/2024 23 Min Read
10 Best USDT Stable Coin Alternatives In Europe

In this article, I will cover the Best USDT Stable Coin Alternatives In Europe.

There are several alternatives that have emerged as the need for a stable, secured as well as regulated form of digital currencies increased and continue to do so even today.

This guide will serve European users well who are looking for reliable alternatives to USDT, be it USD Coin (USDC) or Celo Dollar (cUSD), this guide will cover the options that have emerged.

Key Point & Best USDT Stable Coin Alternatives In Europe List

StablecoinKey Points
USD Coin (USDC)Highly regulated, fiat-backed, widely accepted
EUR Coin (EURC)Euro-backed, regulated in Europe, ideal for European users
TrueUSD (TUSD)Fully backed, regular audits, widely adopted
Paxos Standard (PAX)U.S. regulated, fiat-backed, used in DeFi
Gemini Dollar (GUSD)U.S. regulated, issued by Gemini exchange, fiat-backed
Venus (XVS)Decentralized, built on Binance Smart Chain, synthetic assets
StableUSD (USDS)Fiat-backed, regulated, issued by centralized entity
Wrapped Bitcoin (WBTC)Bitcoin-backed, smart contract enabled on Ethereum
Algofi USD (ALUSD)Decentralized, low-fee, mobile-focused on Algorand
Celo Dollar (cUSD)Mobile-first, decentralized, low-fee, fiat-backed

10 Best USDT Stable Coin Alternatives In Europe

USD Coin (USDC)

Tether (USDT) has dominant competition in the form of USD Coin (USDC) in Europe which is slowly getting foothold there.

USD Coin (USDC)

USDC, despite being relatively new in the market, is backed by solid regulations and a regulatory body which offers high trust in the currency and quick transactions.

TrueUSD (TUSD) and euro-pegged currency like EURS are also worth mention as they provide less volatility than USDT with more regional focus.

Pros & Cons USD Coin (USDC)

Pros:

  • Regulatory Approvals: Being US dollar backed, USDC has the money in the bank. Also USDC currency is routinely audited to maintain transparency.
  • Support: The widespread support of USDC across multiple exchanges and platforms makes it quickly usable and tradable across the entire crypto ecosystem.
  • Predictable Value: Maintaining the US dollar lock guarantees a stable value for USDC coins, making them a great substitute for USDT coins.

Cons:

  • U.S Regulation: With USDC being regulated by a company based in the United States , it is unable to attract users wanting to remain as decentralized.
  • Location Based Restrictions: These regulations can be of certain regions restricting capability of using USDC or even acquiring it.
  • Inflation: Its worth is linked entirely to US dollars and thus, can be subjected to inflation and fluctuating currencies.
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EUR Coin (EURC)

EUR Coin is also known as EURC and it is one of the most used stablecoins in Europe alongside Tether.

EUR Coin (EURC)

It allows users to ensure legal compliance and transparency which is pleasant for those based in Europe.

Other noteworthy alternatives are, EURS which is also backed by Euro, or DAI, which, while being decentralized, are stable and low volatility, suitable for those wishing to secure Euro-pegged assets.

Pros & Cons EUR Coin (EURC)

Pros:

  • Bound to the Euro: EURC is supported by Euro which positions it perfectly for people in Europe wanting Euro assets.
  • Regulatory Compliance: The coin is compliant with EU regulations which means London cushioning clients with worries about volatile transactions.
  • Euro Based Stablecoin: USDT alternatives have volatility and the coin you are concerned with helps to paste that volatility up in the form of EURC.

Cons:

  • Limited Usage: The coin is not as advantageous as USDC, meaning it is not much able to be utilized.
  • Centralization: It is not decentralized which many users look for, instead, it is issued by a centralized body.
  • Dependence on Euro Fluctations: The fluctuations of the Eurozone economy always mean that EURC will always be vulnerable to fluctuations.

TrueUSD (TUSD)

TrueUSD (TUSD) is a trustworthy USDT substitute in Europe because it is regulatory compliant and transparent in nature.

TUSD is not just a true stable coin as it maintains parity with US Dollar BUT it enjoys a fiat reserve backing of more than $ 1 billion thus, allowing it to maintain stable value and widespread utilization on numerous platforms.

TrueUSD (TUSD)

Other European USDT competitors include EUR Coin (EURC) that seeks to maintain a peg to the Euro, and USD Coin (USDC) which is highly regulated.

All of these alternatives are ideal for a European user seeking a credible, stable and secure option in place of USDT.

Pros & Cons TrueUSD (TUSD)

Pros:

  • Complete and Full Obligation: The currency is constructed utilizing the United States Dollar and has undergone audits conducted by a third party on occasion to ensure a safe and secure system.
  • Compliant and Assured: TrueUSD complies with the United States laws and regulations thus offering a reliable and legally acceptable avenue for the use of stablecoins.
  • Common and Usable: Considered as a replacement of USDT, TUSD is excellent as it is accepted in numerous exchanges and platforms.

Cons:

  • Control by a Central Entity: The Tokens are issued by a central organization meaning that is may deter use by users who prefer decentralized options.
  • Not as Widely Usable In Europe: TUSD does not have as much use in Europe as it does in areas like the United States, and is thus overrun by a competing alternatives such as the EURC or the USDC.
  • Overexposure of a Currency: TUSD value is based upon the US dollar whose value depends upon inflation and world currency systems such as the exchange rate.

Paxos Standard (PAX)

Paxos Standard (PAX) is one of the best USDT alternatives based in Europe due to being regulated and a true stablecoin.

Paxos Standard (PAX)

It is backed by US dollars which guarantees stability and security, hence making a good option for European users.

USDT alternatives also include TrueUSD (TUSD) and USD Coin (USDC), both having regulatory protocols in place and sufficient liquidity which offers safe options for people looking to the avoid using USDT within the European region.

Pros & Cons Paxos Standard (PAX)

Pros:

  • Regulatory Compliance: Fully regulated and judicious audited, PAX Token is in compliance with the rules and regulations of the US, guaranteeing a trustworthy option for users.
  • Stable Value: PAX is a dollar pegged stable coin, thus, it allows stability to users and is a more secure option than more volatile cryptos such as USDT.
  • Wide Adoption: Paxos is endorsed across many platforms which ensures that users have liquidity and flexibility in Europe and around the world.

Cons:

  • Centralization: Similar to other stable coins, PAX is issued by a central entity and this could potentially not go well with those in search of decentralized stablecoins.
  • Limited Euro Exposure: For those residing in Europe, PAX may lack appeal as this stablecoin offers no euro since it is pegged to the US dollar.
  • Regulatory Risk: PAX has limited exposure to regulations outside the US, thus increasing its vulnerability to changes in regulations that may affect further use or availability in some jurisdictions.

Gemini Dollar (GUSD)

In Europe, Gemini Dollar (GUSD) is a perfect substitute to USDT because it is a fully regulated and dollar backed stablecoin.

Gemini Dollar (GUSD)

It is a eurozone based stablecoin that not only allows for transparent auditing but is also in compliance with United States regulations hence ensuring security and stability.

Other reliable options include TrueUSD (TUSD) or USD Coin (USDC) as they also offer great backing and liquidity which makes them good in the eyes of European consumers looking for a stable and reliable digital currency other than USDT.

Pros & Cons Gemini Dollar (GUSD)

Pros:

  • Regulatory Compliance: The GUSD stakes its claim in the trust department, as it claims legal adherence by being fully regulated and issued by the Gemini exchange.
  • Full Collateralization: Anyone who chooses to use GUSD is offered stability and security by the fact that GUSD is backed 1:1 against U.S. dollar which is kept in reserve.
  • Audit Transparency: A third-party audit ensures regular assessment of whether GUSD is backed fully and adheres to a certain value.

Cons:

  • Centralization: If users are seeking decentralized alternatives, GUSD is probably not for them as it is issued by a singular entity which is GUSD.
  • Limited European Adoption: GUSD is more geared to be adopted in the US for international platforms rather than Europe. For the European market stablecoins like EURC or USDC have way more utility than GUSD.
  • Fiat Dependency: A factor that is very tricky and can affect GUSD holders is that it is tied to the US dollar which means US inflation and economic conditions will have an effect on GUSD holders.

Venus (XVS)

Venus (XVS) is ushering in a new decentralized alternative within Europe, building synthetic assets and stablecoins on the Binance Smart Chain, and as part of the protocol, it lets users mint and take out loans against collateralized stablecoins like vUSD, which can be used as a substitute for USDT.

Venus (XVS)

While Venus protocol is a robust solution to the USDT flaw, European users also have access to several alternatives, which are USD Coin (USDC) and TrueUSD, TUSD.

These two currencies ensure security through high stability and regulatory compliance.

Pros & Cons Venus (XVS)

Pros:

  • A decentralized ecosystem: Venus is able to function on the Binance Smart Chain as it offers a decentralized environment that allows the creation and maintenance of vUSD and other easier stable coins in the future.
  • Participation in ‘yield farming’: Users are able to undertake additional lending and borrowing which results in them earning extra rewards for the participation that they engage in during the use of the platform.
  • Cost Effectiveness: Users of Venus will be able to enjoy lesser transaction fees owing to Venus being on the Binance Smart Chain.

Cons:

  • Steep Learning Curve: Rather than treating the whole Ethereum Blockchain as secure and legitimate, those who want to interact and utilize assets freely would use stable coins such as USDC and TUSD, which are much. more efficient to use. This is not the case with Venus which is rather complex in nature for new users as it offers a wide range of synthetic assets.
  • Locked on Binance Smart Chain: This cuts down cross-chain compatibility of Venus meaning it is ill suited for wide use when compared to Ethereum based stable coins, therefore limiting its true potential.
  • Limited Adoption: Stable coins such as USDT, USDC, or even TUSD can be easily found due in huge circulation and wide use, developed along stable coin Venus and its clones, which are not even close in terms of popularity.

StableUSD (USDS)

StableUSD (USDS) is gaining popularity in Europe as a fully backed and clear stablecoin that provides a compelling alternative to USDT.

StableUSD (USDS)

It is US dollar backed and ensures easier use across a wide selection of possible platforms.

Other alternatives worth mentioning are TrueUSD (TUSD) and USD Coin (USDC), both of which are highly regarded in regards to full regulatory compliance, liquid market and exceptionally worthy of trust, hence Safe alternatives to USDT for stablecoin transactions by European nations.

Pros & Cons StableUSD (USDS)

Pros:

  • Total Backing – USDS is a stable asset that serves as a potential substitute for USDT since it is entirely secured by United States (US) dollars.
  • User Trust – USDS is compliant with US jurisdiction, and hence, there is no fear of mistrust due to its operations.
  • Flexible Options – Users across the cryptocurrency ecosystem have options due to the liquidity USDS offers as it is accepted by many platforms.

Cons:

  • Single Entity – USDS is controlled by a single organization which does not appeal to decentralized stablecoin fans.
  • Weak European Clientbase – Compared to EURC or USDC stablecoins, USDS has a smaller European clientbase although it is more common in the US market.
  • Volatile Conditions – USDS is controlled by the US currency which is prone to US economic conditions and inflation rate.

Wrapped Bitcoin (WBTC)

Wrapped Bitcoin (WBTC) is a Bitcoin representation token on the Ethereum network that serves as a substitute for USDT in Europe.

Wrapped Bitcoin (WBTC)

Furthermore, it enables its users to use smart contracts available on the Ethereum blockchain while simultaneously utilizing the value of Bitcoin.

While being Trustless USD (TUSD) and USD Coin (USDC), USDT also offers regulatory compliance, stability and liquidity which serve as safe alternatives for those residing in Europe and eyeing for stablecoin choices.

Pros & Cons Wrapped Bitcoin (WBTC)

Pros:

  • Bitcoin Participation: WBTC acts as a bridge for its users to transact with the security and worth of Bitcoin while utilizing the capabilities of Ethereum smart contracts.
  • A Great Deal of Liquidity: The utility of the WBTC token is widespread in the decentralized finance (DeFi) world and offers plenty of liquidity across the various applications in the decentralized parameter.
  • Bitcoin Collateral: Users of Wrapped Bitcoin have a guarantee of complete backing on a 1:1 ratio which is aimed at ensuring clarity and safety.

Cons:

  • Confinement: With WBTC being issued by a single organization, it makes the sitting asset more unattractive to users who prefer the decentralization appeal.
  • Wrap Complexity: It can be more complex to wrap and unwrap Bitcoin compared to simpler stable coins for instance USDC or TUSD.
  • Non Dollar Correlation: Bitcoin as a peg in comparison to Tether (USDT) or USD Coin (USDC) stable coins isn’t suitable for a user wanting to retain consistent value.

Algofi USD (ALUSD)

Algofi USD (ALUSD) is an Algorand based stablecoin that can be deemed as a suitable alternative to USDT in Europe and is fully decentralized.

Algofi USD (ALUSD)

Pegged to a collateral and backed by Algofi’s decentralised protocol, ALUSD is secure and semi-scaling.

USDC and TUSD are other options available that also have the advantage of being widely known and accepted in the EU owing to their regulatory adherence and stability which any user would seek during digital currency transactions.

Pros & Cons Algofi USD (ALUSD)

Pros:

  • Decentralized: Since ALUSD is pegged to the Algorand blockchain, ALUSD presents options that allow for control and transparency.
  • Low Transaction Fees: Owing to the format of the Algorand network which ALUSD operates on, a cost-effective approach is achieved in terms of transactions through a reduction in latency and fees.
  • Scalability: Due to Algorands high scalability combined with core network amplification enhances ALUSDS capability to deal with substantial transactional load without delay.

Cons:

  • Limited Adoption: Compared to coins like USDC or TUSD, ALUSD lacks the usage as it is relatively new and not as widely used which is a drawback.
  • Exposure to Algorand: Users not interested in the Algorand environment may find it difficult to access ALUSD due to its reliance on the Algorand blockchain exclusively.
  • Centralised Issuance: Although claiming decentralization, ALUSDs issuance and governance are under central control, which does not appeal to people who are advocates of using a decentralized stable coin.

Celo Dollar (cUSD)

Celo Dollar, cUSD, is a non-centralized currency and it is tied to the US dollar offering a strong option against USDT in Europe.

Celo Dollar (cUSD)

cUSD is hosted on the Celo blockchain which specializes in the use of mobile devices and swift transfer of funds.

Other notable alternatives include USD Coin (USDC) and TrueUSD (TUSD) which are regulatory compliant, secured, and provide liquidity enabling users in Europe wanting low volatility global accessible stablecoin options.

Pros & Cons Celo Dollar (cUSD)

Pros:

  • Mobile-Friendly: Celo Dollar is highly suitable for users who are in regions that have no access to the traditional financial services as it is mobile optimized.
  • Highly Efficient: The cUSD is built on the Celo blockchain which allows it to offer cheap and swift transactions thus aiding in efficiency.
  • Protective Nature: Decentralization is another key feature of cUSD as it grants individuals a more controlled and clear view of their assets as opposed to ordinary centralized stable coins.

Cons:

  • Low Usage Rate: cUSD lags behind USDC and TUSD in terms of the number of users and this limitation leads to a low liquidity index on platforms.
  • Limited Blockchain Network: Unlike other coins cUSD requires the Celo blockchain which further narrows the number of networks it can connect to.
  • Low Visibility: Compared to Ethereum based and Bitcoin based coins, Celo is relative new and thus doesn’t inspire a lot of trust or figure out a great deal of exposure.

How To Choose Best USDT Stable Coin Alternatives In Europe

Regulatory Compliance: It would be best to identify stablecoins that are compliant in any jurisdiction in which they operate. This will guarantee that legal requirements regarding transparency and security are in place. An alternative would be USDC, EURC, and TUSD which are all compliant examples.

Backing and Transparency: Opt for stablecoins that are collateralized in highly regarded assets e.g. US Dollars or Euros that are auditable on a periodic basis to guarantee their worth. Apart from their mass appeal, USDC and TrueUSD are also very collapsing.

Liquidity and Adoption: Choose a stablecoin that is accepted by a majority of prominent platforms and exchanges. The greater the liquidity and integration surrounding a product, the more convenient it is to utilize.

Blockchain Compatibility: Make sure the stablecoin is compatible with the blockchain system you wish to first use. USDC is a great example as it has a wider reach being operational on various chains such as Ethereum, Solana while cUSD can only function in a selective ecosystem Celo.

Security: Take into consideration coins possessing strong security measures in order to prevent hacks and fraud. Usually coins that have third-party audits (like PAX, USDC coins) are more secure.

Fees and Transaction Speed: Look at stablecoins which have low transactional costs whilst also ensuring quick processing times. Coins listed on faster networks such as Algorand (ALUSD) or Binance Smart Chain (Venus) may have an advantage here.

Conclusion

To summarize, the best USDT stablecoin alternatives in Europe will be determined by your specific requirements such as regulatory conditions, stability and compatibility with the blockchain etc.

Since USDC and EURC have strong market adoption and regulatory compliance, they will be suitable for European users.

Stablecoins such as TUSD, PAX and GUSD are supported by regular audits which increases their level of transparency and security, meanwhile cUSD and ALUSD are more flexible due to their decentralized nature and mobile-first approach.

However, there are many factors to take into account such as safety, liquidity, and others, that will ultimately enable you to find the most effective stablecoin as a substitute for USDT in your European transactions.

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Nick Jonesh
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Nick Jonesh Is a writer with 12+ years of experience in the cryptocurrency and financial sectors. He writes for the coinroop on the same topic of cryptocurrency, including technical stuff for IT folks and practical guides about everything else for the real world. Nick's clear writing is a direct response to the new, crypto financial landscape.