European Banks Unite to Launch Euro-Backed Stablecoin

_{Photo credit: Noppasin Wongchum / Shutterstock.com}

Nine leading European banks have announced a joint initiative to issue a euro-pegged stablecoin, aiming to reduce the dominance of US dollar-based tokens in the EU.

Finextra reports the consortium is led by ING and includes Banca Sella, CaixaBank, Danske Bank, DekaBank, KBC, Raiffeisen Bank International, SEB, and UniCredit.

The stablecoin will operate in compliance with the EU’s Markets in Crypto-Assets regulation (MiCAR), using blockchain infrastructure to facilitate swift, transparent, and low-cost cross-border settlements.

Stablecoins denominated in US dollars currently command around 99% of market capitalization, while euro-based stablecoins have a market capitalization of less than €350 million.

The banks plan to launch the stablecoin in the second half of 2026. A new company incorporated in the Netherlands will seek licensing as an e-money institution under Dutch central bank supervision. As part of the rollout, each bank may provide complementary services such as wallet infrastructure and custody.

Digital assets lead at ING, Floris Lugt, said: “We believe this development requires an industry-wide approach, and it’s imperative that banks adopt the same standards.”

The consortium of banks is open to additional members and expects to appoint a CEO shortly.