Western Europe’s cryptocurrency economy has reached $2.08 trillion in annual activity, with stablecoin holdings rising 131% even as the region’s largest market, the United Kingdom, recorded a decline. Summary Western Europe’s crypto economy reached $2.08 trillion, growing 1.2% despite a global market downturn. Stablecoin holdings across the region surged 131%, compared with global growth of 52%. The UK remained the largest regional crypto market at $424.5 billion, although overall activity fell 8%. Domestic stablecoin transfers in the UK climbed to $2.09 billion, while French self custody balances rose 192%. According to a November 9 report from blockchain analytics firm Chainalysis, crypto activity across Western Europe grew 1.2% between July 2025 and June 2026, making it the world’s second-largest regional crypto economy. The region was among only three worldwide to record positive growth during the period, alongside Sub-Saharan Africa and Latin America. The UK remained Europe’s largest crypto market, handling $424.5 billion in activity despite an 8% annual contraction, largely attributed to lower decentralized exchange trading. Germany followed with $288.8 billion, while France recorded $215.8 billion. The Netherlands accounted for $207.8 billion, followed by Spain at $156.1 billion and Switzerland at $132.8 billion. Together, the six countries represented roughly two-thirds of the region’s cryptocurrency activity. Stablecoin holdings grow much faster than the global average Stablecoin holdings in personal wallets across Western Europe rose 131% during the reporting period, compared with global growth of 52%. Chainalysis found that the region’s share of worldwide stablecoin balances climbed from 3.4% to 5.1%, with Austria and France recording particularly strong growth. The expansion comes as European financial institutions develop regulated stablecoin products under the Markets in Crypto-Assets Regulation, or MiCA. In October, the European Banking Authority classified Circle’s USDC as the first significant electronic money token under the framework, placing specified reserve and redemption safeguards under its direct supervision from November 12. European banks have been entering the market as well. The Qivalis banking consortium secured authorization in October to operate as an electronic money institution in the Netherlands, although its proposed euro stablecoin had not yet entered circulation. Jan-Oliver Sell, CEO of Qivalis, told Chainalysis that regulated euro stablecoins could serve “as the on-chain cash leg for tokenised assets” and support programmable business payments. UK stablecoin transfers surge despite declining crypto activity Although overall cryptocurrency activity declined in the UK, domestic stablecoin transfers climbed from $109 million to $2.09 billion over the reporting period. The country accounted for 60% of Western Europe’s domestic stablecoin transfer value, exceeding the $1.41 billion recorded across the rest of the region combined. Domestic transfers in the UK were 1.32 times the value of the cross-border activity measured by Chainalysis, while other Western European markets continued to rely more heavily on international transfers. Retail investors showed a similar preference for stablecoins. Around 1.03% of eligible UK retail wallets converted at least 80% of their cryptocurrency holdings into stablecoins, compared with 0.66% during the previous year. The findings come as the Financial Conduct Authority prepares to introduce a more comprehensive regulatory framework for digital assets. As crypto.news previously reported, cryptocurrency businesses were given an application window running from September 30, 2026, through February 28, 2027, ahead of the new regime scheduled for October 2027. France sees growing self-custody as Spanish exchanges attract foreign users In France, stablecoin balances held in personal wallets rose 192% as the country faced mounting fiscal pressure and political uncertainty. The number of French personal wallets holding stablecoins climbed from 3,577 in June 2025 to 12,255 in June 2026. Stablecoins accounted for 54.2% of French withdrawals from centralized exchanges by the end of the period, the highest proportion among the major Western European markets examined. Spain experienced a different trend, with registered cryptocurrency exchanges attracting more funds from other European countries than from domestic users. Cross-border inflows from Western Europe rose 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. “In Italy, regulatory complexity and sector fragmentation have historically made it difficult to consolidate certain operators,” Ayala said.
