Nine of Europe’s largest banks have come together to launch a euro-backed stablecoin, aiming to transform the continent’s digital payments landscape.
The initiative will operate under the European Union’s Markets in Crypto Assets (MiCA) regulation, which governs digital currencies across the region.
The founding members include ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International. By pooling their resources, the banks plan to create a payment instrument that can serve as a reliable alternative to existing options in the global market.
A European Alternative to USD-pegged Stablecoins
The participating banks highlighted that the project is not just about technology, but also about strategic independence. Today, the stablecoin market is dominated by USD-backed tokens such as Tether (USDT) and USD Coin (USDC). Europe, they argued, needs a homegrown option that reflects its own financial sovereignty.
According to the group’s joint statement, the euro-backed stablecoin will provide a European standard for digital payments. It promises near-instant settlement, lower transaction costs, and 24/7 availability, features often missing in traditional banking systems. The coin will also support programmable payments, supply chain efficiencies, and digital asset transactions.
Timeline and Regulatory Path
The first issuance of the stablecoin will be in the second half of 2026. To prepare, the consortium has established a new company in the Netherlands, which will act as the operational hub. This entity will apply for a license as an e-money institution from the Dutch Central Bank.
The governance model is designed to be adaptable, enabling more banks across Europe to join the consortium over time and expand the network’s reach. The group also plans to appoint a Chief Executive Officer soon, subject to regulatory approval.
Services for Customers and Businesses
Beyond issuing the stablecoin, individual banks will be free to develop their own customer-facing services. These could include stablecoin wallets, custody solutions, or integration into existing mobile banking apps. The banks believe this flexibility will make adoption easier for both retail clients and corporate users.
Floris Lugt, Head of Digital Assets at ING, emphasized that innovation should go hand in hand with collaboration. He highlighted that digital payments bring significant transparency and efficiency, but stressed the importance of the industry adopting common standards.
According to Lugt, banks cooperating on blockchain-based solutions will be key to ensuring interoperability across Europe.
The development follows other moves in the region. Earlier this week, Société Générale’s blockchain arm, Forge, announced that its own euro stablecoin had gone live under MiCA rules. The French bank also introduced a dollar-pegged token, USDCV, which was listed on the Bullish Europe exchange.
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