The euro is one of the most widely used currencies in the world: second in international payments by SWIFT volume, a core component of global FX reserves, and the currency of the world’s third-largest economy. Onchain, the picture inverts. USD stablecoins stand at roughly $300B, compared with under $1B for EUR stablecoins, a ratio of over 340 to 1. Matching the euro’s offchain weight would imply a euro stablecoin supply on the order of $96B, more than 100 times today’s level.

Euro tokens account for less than 1% of tokenised cash worldwide, and two structural factors explain much of it. MiCAR prohibits issuers from paying interest on holdings, so holding a euro token earns nothing on its own. And borrowing demand for euro-denominated assets is thin, so lending rates in EUR markets trail those in USD. Without a reason to hold or lend, supply stays fragmented and shallow.

For treasury holders with euro exposure, the result is a short menu: idle balances or lending venues tied to US-dollar market dynamics.

The KPK EURe Yield vault

KPK’s EURe Yield vault is a curated lending vault on Arbitrum that accepts EURe, Monerium’s regulated euro e-money token. Depositors supply EURe and earn the borrowing rates paid by users who post collateral to borrow euros. KPK curates the set of markets, sizes the exposure, and operates the vault. Deposits are allocated initially across four isolated overcollateralised markets, priced off Chainlink EUR/USD:

Every market clears KPK’s Risk Framework before it is added and carries its own exposure cap, enforced by KPK’s agents, to keep the vault diversified. The vault targets at least 30% of deposits to be instantly withdrawable.

A lending vault is only as good as its borrowing demand. EURe gives borrowers an instant SEPA off-ramp to an account in their own name, with no exchange in between. And, being MiCAR-compliant, it works for treasuries with legal requirements on the deposit side as well. That's why we wanted to build this vault with Monerium.

Giel Detienne - Head of Curation at KPK

Liquidations and large withdrawals need a deep EURe/USDC route. A Uniswap v3 EURe/USDC pool (0.05% fee) on Arbitrum has been seeded, and major aggregators including 1inch, CoW Swap, KyberSwap, 0x and relay.link route through it.

Compliant by design

EURe is issued by Monerium as a MiCAR-compliant euro e-money token, backed 1:1 by euro reserves and redeemable at par. For holders with compliance requirements, that matters: the vault’s deposit asset sits inside the European regulatory perimeter, rather than being a synthetic or unregulated euro. Yield in the vault is paid by onchain borrowers, so EURe itself remains non-interest-bearing. KPK stays non-custodial throughout: depositors hold vault shares and can withdraw onchain at any time, subject to available liquidity.

Launching EURe lending on Arbitrum required a partner with deep DeFi experience and a disciplined approach to risk. KPK brought both. Their team made the process straightforward, moved quickly without compromising on diligence, and gave us confidence throughout. That combination of expertise and execution is exactly what we value in a long-term partner.

Arni Gudjonsson - Chief Product Officer, Monerium

Borrowing EURe

A lending market needs borrowers as much as it needs depositors, and EURe gives holders built-in benefits thanks to its compliant status:

• Banking system link: Monerium supports an instant SEPA off-ramp, so borrowed EURe can reach a bank account without passing through an exchange. That removes an intermediary, an extra account to open and a counterparty to trust with funds along the way. The bank account involved is held in the borrower’s own name, which also means a streamlined off-ramp experience. 

• Money status: EURe works as money, not only as a loan asset. Monerium allows direct payments from EURe balances, so a DAO or protocol can settle euro-denominated costs such as contributor payments, supplier payments, and invoices without first selling its collateral. The same rails run in reverse: any SEPA account can on-ramp into EURe, which makes repayment a bank transfer rather than a trade. A borrower who needs to close or reduce a position does not have to source EURe on a DEX.

For borrowers who prefer to stay onchain, the borrowed EURe is fully usable across DeFi: supplied to other lending markets, provided as liquidity, or traded on DEXes. Monerium also offers a built-in bridge tool that moves EURe between supported chains at no extra cost, accessible through the user interface.

Who this is for

DAOs and protocols with euro obligations, crypto-native funds and foundations with underdeployed EUR balances, and institutional treasury holders who want a defined, non-custodial, compliant euro yield venue. On the borrowing side, treasuries that hold ETH, BTC, or USDC and need euros without selling the underlying assets.

Vault | Docs | Liquidity pool | 0x7bfdE3A7bd346Da92521D384563F89BB45dE1f60

First integration live

The KPK EURe Yield vault is now available inside Bleap, its first integration in a consumer app. Through EUR Vault, Bleap users can earn on their euro balance without converting to dollars, setting up a wallet or navigating a DeFi dashboard.

EUR Vault is live now in the Bleap mobile app under Savings.

About Monerium

Monerium provides a regulated and MICA-compliant euro payment infrastructure for fintechs, wallets, exchanges, and DeFi platforms. Through its APIs, partners can integrate customer onboarding, named EUR IBANs, SEPA payments, and onchain euro settlement directly into their products.

At the core is EURe, Monerium's MiCA-compliant euro e-money token, which enables seamless movement of euros between bank accounts and blockchain wallets. This allows partners to offer euro payments, on- and off-ramps, treasury management, and DeFi services under their own brand without relying on traditional crypto exchanges.

Monerium is licensed as an Electronic Money Institution in Iceland and became the first company authorised to issue e-money on public blockchains in 2019.