Euro depreciates to new lows, why on-chain stablecoins have become the institutions' "Sea Anchor"

The euro falls below 1.16 against the US dollar, hitting a new low since December 2, 2025. This is not only a signal of macroeconomic volatility but also a reminder of the fragility of traditional finance. As fiat currency fluctuations intensify, the value of on-chain stablecoins and RWA ecosystems begins to stand out.

Institutional Anxiety Behind the Euro Depreciation

According to the latest news, the euro against the dollar dropped 0.37% intraday. Although the daily fluctuation seems modest, it is the first time in nearly 1.5 months to break below the key level of 1.16. For European institutional investors, this means euro-denominated assets are shrinking, and cross-border transaction costs are rising.

Traditional responses are limited to two options: hedge with USD or seek more stable assets for risk aversion. But both have issues—holding USD during a dollar appreciation cycle exposes exchange rate risk, while seeking safe assets often involves complex cross-border procedures and lengthy settlement cycles.

On-Chain Stablecoins as a “Timely Rain”

This is why euro stablecoins like EURQ are starting to attract institutional attention. According to relevant information, EURQ is jointly launched by Dusk, Quantoz Payments, and NPEX. Each EURQ is backed by an equivalent amount of euros stored in a regulated custodial bank, with third-party audit results published on-chain via Chainlink oracles.

What does this mean? Institutions can quickly convert euro assets into on-chain stablecoins during exchange rate fluctuations, enabling:

• Instant settlement instead of traditional T+2 bank processes
• Cross-border transfers without complex SWIFT procedures
• Complete on-chain audit trail, meeting EU regulations like MiCA
• Transaction costs reduced by over 40% compared to traditional methods

RWA Ecosystem as a “Stable Foundation”

Deeper value lies in the fact that EURQ has become the core settlement tool for NPEX’s regulated security tokenization. According to information, over 17,500 investors have participated in trading and dividends via EURQ, with settlement efficiency improved by 80%.

In other words, when the euro depreciates, institutional investors holding tokenized assets can quickly settle profits using EURQ without worrying about delays and exchange risks in traditional banking systems. This is a tangible efficiency boost for tokenized securities worth hundreds of millions of euros (such as bonds, real estate funds).

Personal Opinion

I believe the real significance of this euro depreciation is not in the exchange rate itself but in its reaffirmation of a logic: The higher the volatility of traditional finance, the more the value of on-chain stable infrastructure is highlighted.

Compared to that, crypto assets with only speculative attributes often become “risk assets” in such times, whereas RWA ecosystems backed by real assets and with robust compliance frameworks become preferred risk hedging options for institutions.

Outlook

In the coming months, if the euro continues to face pressure, demand for compliant stablecoins like EURQ will further increase. Meanwhile, the launch of DuskTrade within the Dusk ecosystem (planned for the second week of January with the EVM mainnet) will provide more application scenarios for these stablecoins—upgrading from settlement tools to trading hubs.

Summary

The euro depreciation is fundamentally a macroeconomic signal, but for the crypto ecosystem, it reveals a core fact: Stablecoins are no longer just speculative tools but institutional-grade financial infrastructure. When traditional financial volatility intensifies, the “stability” of on-chain stablecoins becomes the most scarce resource. For investors focused on the RWA track, this offers a valuable perspective—watch which projects can truly demonstrate stability in such times rather than follow the hype.