Western Europe’s cryptocurrency economy expanded to $2.08 trillion in annual transaction activity between July 2025 and June 2026, even as broader global crypto markets weakened. According to a Chainalysis report published on November 9, regional activity grew 1.2% year over year, making Western Europe the world’s second-largest crypto economy and one of only three regions to record positive growth during the period.
Stablecoins were the strongest growth driver. Personal-wallet stablecoin holdings across Western Europe climbed 131%, far above the global growth rate of 52%. The region’s share of global stablecoin balances rose from 3.4% to 5.1%, with Austria and France recording particularly sharp increases.
The United Kingdom remained the largest single market with about $424.5 billion in transaction value, despite an 8% annual decline linked partly to reduced decentralized exchange activity. Germany ranked second at $288.8 billion, followed by France at $215.8 billion and the Netherlands at $207.8 billion. Spain and Switzerland recorded $156.1 billion and $132.8 billion, respectively. Together, these six countries accounted for roughly two-thirds of the region’s crypto economy.
A notable shift emerged in the UK’s stablecoin usage. Domestic stablecoin transfers between UK-based wallets jumped to $2.09 billion from just $109 million in the previous 12 months, representing about 60% of Western Europe’s total domestic stablecoin transfer value. UK domestic stablecoin transfers were 1.32 times the value of cross-border activity, suggesting stablecoins are increasingly used for local transactions rather than only international transfers. The share of eligible UK retail wallets converting at least 80% of crypto holdings into stablecoins rose from 0.66% to 1.03%.
France showed even faster self-custody growth. Stablecoin balances held in French personal wallets increased 192%, with the number of such wallets rising from 3,577 in June 2025 to 12,255 in June 2026. Stablecoins accounted for 54.2% of withdrawals from centralized exchanges by the end of the period, the highest proportion among major Western European markets. Chainalysis noted the trend coincided with fiscal pressure and political uncertainty in France, although the data does not establish direct causation.
Regulatory clarity under the European Union’s Markets in Crypto-Assets Regulation is shaping the market. In October, the European Banking Authority classified Circle’s USDC as the first significant electronic money token under MiCA, placing reserve and redemption safeguards under direct supervision from November 12. Separately, the Qivalis banking consortium secured authorization as an electronic money institution in the Netherlands, though its proposed euro stablecoin had not yet entered circulation. Qivalis CEO Jan-Oliver Sell said regulated euro stablecoins could serve as the on-chain cash leg for tokenized assets and programmable business payments.
Spain meanwhile attracted growing cross-border inflows from other European countries, with registered exchanges seeing inflows from Western Europe rise 79.1%, compared with 24.6% growth in Spain’s overall crypto economy. Italy and Portugal were major contributors, with inflow growth accelerating to 329% and 751%, respectively. Gabriel Ayala, director of API and banks at Spanish exchange Bit2Me, attributed part of the trend to fragmented domestic exchange markets in neighboring countries.
Looking ahead, the UK Financial Conduct Authority is preparing a broader digital asset regime, with an application window for crypto businesses running from September 30, 2026, through February 28, 2027, ahead of the new framework scheduled for October 2027. The expansion of euro-denominated stablecoins and MiCA implementation could further strengthen links between traditional finance and digital asset markets.
