A consortium of nine major banks, including ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International, is partnering up to launch a new euro-backed stablecoin. The stablecoin is set to launch in late 2026 and will comply with the EU"s recently introduced “Markets in Crypto-Assets Regulation” (MiCA).
MiCA, which was put into effect from mid-2024, sets strict criteria, including full backing of stablecoins with reserves and bans algorithmic stablecoins, making this consortium’s stablecoin a fully regulated and secure digital asset.
While other stablecoins like Thether"s USDT and Circle"s USDC have led global adoption, European policymakers are concerned that these payment innovations are dominated by US-based companies. Thether had also launched a British pound stablecoin called GBPT; however, it was still developed by an American player. By issuing a regulated token backed by the euro and overseen by the Dutch Central Bank, the banks aim to provide a European alternative that will support the continent"s financial autonomy.
Floris Lugt, Digital Assets lead at ING and joint public representative of the initiative, said in a statement:
"Digital payments are key for new euro-denominated payments and financial market infrastructure. They offer significant efficiency and transparency, thanks to blockchain technology"s programmability features and 24/7 instant cross-currency settlement. We believe this development requires an industry-wide approach, and it"s imperative that banks adopt the same standards."
The stablecoin will be powered by blockchain and promises low-cost, near-instant payment and settlement services. Users in the EU will benefit from 24/7 availability, programmable payments (such as automating supplier payments or payroll), and seamless cross-border transactions. Banks will be able to offer add-ons like secure wallets and custody services for stablecoin holders.
The founders of the consortium plan to appoint a CEO soon and will also invite more banks to join the initiative. The group is currently working towards full regulatory approval, as European regulators continue to tighten oversight of crypto assets and continue exploring more digital euro pilots.
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