What a stablecoin is
A stablecoin is a crypto token designed to keep a steady value, usually one US dollar or one euro, backed by reserves held by its issuer. USDC and EURC (both issued by Circle) are examples. A stablecoin is not a bank deposit: you hold a claim on the issuer and rely on the reserves behind it.
The full cost of sending money with a stablecoin
A stablecoin transfer has three steps, and each has its own cost:
| Step | Where the cost hides | What to check |
|---|---|---|
| 1. Buy the stablecoin | Exchange fee or spread, and currency conversion if you pay in another currency. | The fee schedule and the price you actually get. |
| 2. Send it | Network fee on the blockchain you use. | Which network the recipient's wallet or exchange supports. A wrong network or address can mean the funds are lost. |
| 3. Sell it and withdraw | Exchange fee or spread on selling, plus a withdrawal fee to the bank. | Whether your recipient can cash out locally, and at what cost. |
There is one more cost specific to dollar stablecoins. If you start with euros and the recipient needs zloty, a USD stablecoin adds two conversions (euro to dollar and dollar to zloty), each with its own spread. A euro stablecoin such as EURC removes the first, but the recipient still needs to convert to zloty. Compare that total against a direct euro-to-zloty transfer, described in our Germany and Poland guide, before you decide.
Stablecoin vs bank transfer side by side
| Stablecoin | Bank or transfer service | |
|---|---|---|
| Speed | The transfer itself confirms in seconds to minutes, but buying and cashing out take extra time. | Euro SEPA transfers typically arrive within a business day, and instant euro transfers are increasingly available. EU rules say instant transfers may not cost more than regular ones (Regulation (EU) 2024/886). |
| Protection | No deposit guarantee. Value depends on the issuer's reserves and on the platform you hold it with. | Bank deposits are covered by a deposit guarantee scheme, for example up to EUR 100,000 per depositor in the EU. Transfer services safeguard funds in other ways. |
| Price stability | Designed to hold its value but can fall below its peg. | No price risk on a fiat transfer, apart from the exchange rate itself. |
| Regulation in the EU | Covered by the MiCA regulation. Availability of some stablecoins varies by platform. | Regulated payment and banking rules, with established complaint and refund routes. |
| What the recipient needs | A wallet or exchange account and a way to cash out. | A bank account. |
| Tax and records | Selling or converting can be a taxable event in many countries. | Usually simpler: a transfer between your own or other people's accounts. |
What EU rules mean for stablecoins
- MiCA: the EU's crypto-asset regulation sets rules for stablecoin issuers. Circle states that it issues USDC and EURC in the EU as e-money tokens through an electronic money institution licensed in France, and publishes a MiCA redemption policy for holders.
- Not every stablecoin is available: since the rules took effect, some stablecoins, notably USDT, have been restricted on many EU-regulated platforms. Check which stablecoins your platform offers to customers in your country.
- Travel Rule: from 30 December 2024, EU crypto-asset service providers must collect and pass on information about the sender and the recipient of a crypto transfer. Regulated platforms are not anonymous.
Risks worth knowing
- Depeg risk: in March 2023 USDC fell to about 87 cents on the dollar over a weekend after its issuer disclosed reserves held at Silicon Valley Bank, and recovered within days.
- Irreversible mistakes: a transfer to a wrong address or on the wrong network usually cannot be reversed.
- Platform risk: your stablecoins are only as safe as the platform or wallet that holds them.
- Cash-out risk: if the recipient cannot sell the stablecoin locally at a fair price, the low network fee no longer matters.
- Scams: requests to "send USDC" to an unknown address are a common fraud pattern.
When a stablecoin can make sense
- You or the recipient already hold crypto and want to move it without converting to bank money.
- You need to move value outside banking hours, and both sides can buy and sell the stablecoin at a fair price.
- The bank route to your destination is slow or expensive, and a reliable on-ramp and off-ramp exists on both sides.
If none of these applies, a bank or a regulated transfer service is usually the simpler path. You can see what a lower margin is worth with the transfer savings calculator, and our crypto guide covers exchanges and their fees.
Try Coinbase
Coinbase
Buy, hold and send stablecoins such as USDC and EURC. Availability depends on your country.
Visit Coinbase →FairAscent may earn a commission if you sign up through this link, at no extra cost to you. See How we make money.
Frequently asked questions
Is a stablecoin transfer cheaper than a bank transfer?
Not always. The transfer itself on a blockchain can be cheap, but you usually pay to buy the stablecoin, a network fee, and to sell it and withdraw to a bank. For euro-to-euro or euro-to-zloty transfers inside the EU, a regulated transfer service or a bank is often simpler and just as cheap.
Are stablecoins covered by deposit insurance?
No. Stablecoins are not bank deposits, so deposit guarantee schemes do not apply to them. Under the EU's MiCA rules, issuers of e-money tokens such as USDC have obligations such as redemption, but that is a different kind of protection from a deposit guarantee.
Is USDC regulated in the EU?
Circle, the issuer of USDC, states that it issues USDC in the EU as an e-money token under MiCA through an electronic money institution licensed in France. Other stablecoins have been restricted on many EU-regulated platforms since the rules took effect, so check what your platform supports.
Can a stablecoin lose its value?
Yes. In March 2023 USDC briefly traded well below one dollar after its issuer disclosed that part of its reserves was held at Silicon Valley Bank, before recovering within days. A stablecoin is designed to hold its value but is not guaranteed to.
Do I pay tax when I use stablecoins to send money?
Selling or converting crypto can be a taxable event in many countries, and the rules differ by country and change over time. Check your local rules or ask a tax adviser before you rely on stablecoins for regular transfers.
Are stablecoin transfers anonymous?
Not on regulated platforms. Since 30 December 2024, EU crypto-asset service providers must collect and pass on information about the sender and recipient of crypto transfers under the EU Transfer of Funds Regulation.
Sources
Figures and statements on this page were checked against the following sources on 20 September 2026. Fees, rates and rules change, so always confirm on the provider's own page before you act.