Denmark central bank warns stablecoin growth could pose financial risks

Danmarks Nationalbank has warned that a sharp increase in stablecoin use could eventually affect Denmark’s payments, financial system and monetary policy transmission, despite their limited use in the country today.

Summary

• Stablecoin use remains very limited in Denmark, with no Danish krone denominated stablecoin currently in circulation.
• Danmarks Nationalbank warned that increased adoption could affect payments, financial stability and monetary policy transmission.
• Turmoil involving dollar stablecoins could reach Denmark through spillovers from the US financial system and global markets.
• The central bank said central bank money should remain the primary settlement asset between banks in a tokenized financial system.

Danmarks Nationalbank said in a Sept. 9 analysis that stablecoins have expanded globally in recent years, with activity rising sharply toward the end of 2025, while adoption in Denmark remains very low. The central bank said no Danish krone-denominated stablecoin currently exists.

The assessment comes as stablecoin services are becoming easier to access across Europe, including through banks, fintech companies and regulated payment infrastructure. The Danish central bank expects greater availability through financial companies and new payment applications could eventually lead to higher domestic use.

One recent example has already reached Denmark. Revolut began rolling out EURR to selected customers in Denmark, Poland and Portugal on Aug. 26, with expansion into other European Economic Area markets planned later in 2026. The euro-pegged token is issued by Stripe-owned Bridge Building and is designed to maintain a value of €1 under the European Union’s Markets in Crypto-Assets rules.

The launch gives Danish users access to a regulated euro stablecoin through a large financial platform even though Denmark does not have a stablecoin tied to its own currency.

Stablecoin risks remain limited in Denmark

Danmarks Nationalbank said stablecoins currently have no implications for Denmark’s financial system because their domestic use remains small. Risks could change if adoption increases substantially, particularly if foreign currency-denominated tokens become common.

Dollar-denominated stablecoins were singled out as one possible channel for external financial shocks. Turmoil involving such tokens could reach Denmark through spillovers from the U.S. financial system and international financial markets, according to the central bank.

The issue is tied to the scale and currency composition of the global market. Dollar-pegged tokens continue to dominate stablecoin capitalization, while euro-denominated alternatives account for only a small portion of the sector.

Euro stablecoins have nonetheless expanded under MiCA. Decta data published in July showed that the market capitalization of eight MiCA-compliant euro stablecoins increased 128% over the year through June 28, rising from $295.6 million to $673.9 million. Trading volume across the group increased 43.1% to $67.3 million.

At the time, the eight euro tokens were still worth less than 1% of the global stablecoin market, while dollar-denominated USDT and USDC accounted for a much larger share.

Danmarks Nationalbank said increased stablecoin use could eventually affect more than payments. Its analysis identified possible effects on financial markets, banks and the way monetary policy passes through the economy.

Banks could increase stablecoin access

European financial institutions have been developing stablecoin products and infrastructure as MiCA establishes rules for crypto assets across the bloc.

A banking consortium behind Qivalis expanded to 37 institutions in May after adding 25 banks from 15 European countries, including ABN AMRO, Rabobank, Nordea and Intesa Sanpaolo. The consortium has been preparing a regulated euro stablecoin, with its launch planned for the second half of 2026.

The project includes banks such as ING, UniCredit, CaixaBank and BBVA and is intended to support regulated onchain payments and settlement. Its membership gives the project a distribution network across several European banking markets.

Payment infrastructure providers have been building similar services. OpenPayd secured MiCA authorization in June, giving it crypto-asset service provider status and allowing it to offer fiat-to-stablecoin conversions, custody, wallet infrastructure and stablecoin transfers across the EEA.

crypto.news previously reported that corporate treasury teams have become a source of stablecoin demand in Europe, with businesses examining the tokens for settlement, international payments and moving funds outside normal banking hours.

Data cited by Paybis showed USDC volume in the European Union increased roughly 109% between October 2025 and March 2026, while its share of stablecoin activity on the platform rose from around 13% to 32%.

The development of bank and fintech distribution channels fits one of the routes identified by Danmarks Nationalbank through which stablecoin use could increase in Denmark. The central bank said greater availability through banks and other financial companies, together with new payment applications, may lead to more use over time.

Central bank money should remain the settlement base

Danmarks Nationalbank took a different position on stablecoins as a settlement asset between financial institutions.

While describing its approach to new forms of digital money as technology-neutral, the central bank said central bank money should remain the common foundation for trust and stability in the monetary system and the primary settlement asset between banks.

The position is similar to one taken by the European Central Bank as financial institutions develop tokenized securities, deposits and payment systems. ECB Executive Board member Piero Cipollone said in March that tokenized financial markets require a settlement anchor in central bank money, including when stablecoins and tokenized commercial bank deposits are used.

The Eurosystem has been developing infrastructure intended to provide that connection. Pontes is designed to link distributed ledger technology platforms with TARGET Services, allowing tokenized transactions to settle using central bank money.

Danmarks Nationalbank said it is working with the ECB to make sure banks can retain access to central bank money in a tokenized financial system. Under its assessment, new technology can change how financial assets and payments operate without replacing central bank money as the settlement layer between banks.

The central bank said stablecoins remain part of the development of new digital money and payment solutions driven by technology and international companies. Its analysis identified resilient payment systems, trust in money and a functioning monetary system as considerations if their use in Denmark increases.