TLDR
- Nine major European banks are creating a euro-denominated stablecoin under MiCA regulations.
- The new stablecoin will enable 24/7, low-cost cross-border payments and digital settlements.
- The stablecoin aims to be a European alternative to US-dominated stablecoin markets.
- The initiative will help improve supply chain management and programmable payments in Europe.
Nine major European banks have united to create a euro-denominated stablecoin, which will be regulated under the European Union’s Markets in Crypto-Assets Regulation (MiCA). The consortium includes financial giants such as ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International. This initiative aims to develop a new digital payment solution that provides a competitive alternative to the US-dominated stablecoin market.
The new stablecoin will leverage blockchain technology to enable fast, low-cost, and secure cross-border payments. It will also provide 24/7 access to efficient payment processing, which can enhance supply chain management and digital asset settlements, including securities and cryptocurrencies.
Key Features of the Stablecoin Initiative
The banks involved in the project aim to create a trusted European standard for digital payments. According to Floris Lugt, the Digital Assets lead at ING, the project’s goal is to build a new euro-denominated payment infrastructure that utilizes the programmability features of blockchain technology.
“Digital payments are key for new euro-denominated payments and financial market infrastructure,” Lugt explained. “They offer significant efficiency and transparency.”
By using blockchain, the stablecoin will provide users with instant settlement capabilities and programmable features, enabling more streamlined payments and reducing the operational costs associated with traditional payment systems. The initiative is designed to support both institutional and retail use, enhancing the overall accessibility and adoption of blockchain-based payments across Europe.
Regulatory Compliance and Future Launch
The stablecoin will be regulated under the MiCA framework, which aims to provide legal clarity and ensure that crypto assets and stablecoins are safe for market participants. The regulatory framework is particularly important for European countries looking to create a unified and secure digital finance ecosystem.
The stablecoin consortium has established a company in the Netherlands that plans to be licensed and supervised by the Dutch Central Bank as an e-money institution.
The stablecoin is expected to be issued in the second half of 2026. This timeline aligns with the broader regulatory push in Europe to create a more transparent and reliable digital financial infrastructure. While the initiative is currently focused on the euro, the consortium is open to future collaborations with additional banks.
Potential Impact on the European Digital Finance Ecosystem
This new euro stablecoin is seen as a critical move to enhance Europe’s strategic autonomy in payments, providing an alternative to the current dominance of US-based stablecoins. The European Union’s regulatory approach to crypto-assets is seen as more progressive compared to other regions, particularly in fostering innovation while ensuring consumer protection.
By offering a European alternative, the banks involved aim to ensure that the region remains competitive in the growing digital finance space. This initiative has the potential to transform the way cross-border payments are made in Europe, particularly in areas such as remittances, trade settlements, and institutional transactions.
The creation of a MiCA-compliant euro stablecoin is also a step toward improving the interoperability of digital assets across jurisdictions. This development could be especially useful for businesses operating in the EU that require a reliable and cost-effective way to manage cross-border payments.
