Nine Banks Unite for a Euro-Pegged Stablecoin
Dutch banking giant ING and Italy’s UniCredit are among nine European banks collaborating on the development of a MiCA-compliant euro stablecoin, set to launch in the second half of 2026.
The joint initiative, announced Thursday in a statement by ING, aims to create a trusted European payment solution that strengthens the region’s strategic autonomy and provides a local alternative to US-dominated stablecoin markets.
A European Alternative to Dollar-Dominated Stablecoins
The euro-pegged stablecoin will be fully compliant with the EU’s Markets in Crypto-Assets (MiCA) regulation, which comes into force in 2024. By adhering to MiCA standards, the banks hope to establish a secure and regulated stablecoin that can support Europe’s digital economy and cross-border payments.
The launch is also positioned as a strategic step to reduce reliance on foreign stablecoins, most of which are backed by the US dollar, and to advance Europe’s sovereignty in digital payments.
Eight EU Countries Represented
Alongside ING and UniCredit, the project includes CaixaBank (Spain), Danske Bank (Denmark), Raiffeisen Bank International (Austria), KBC (Belgium), SEB (Sweden), DekaBank (Germany), and Banca Sella (Italy).
The consortium has also formed a new company headquartered in the Netherlands to oversee the stablecoin’s development and management. According to the announcement, other banks are welcome to join the initiative in the future.
24/7 Cross-Border Payments and Smart Features
The euro stablecoin is designed to deliver near-instant, low-cost transactions with 24/7 availability, supporting cross-border payments across Europe and beyond.
Additional features will include programmable payments, improved supply chain management, and seamless settlement of digital assets ranging from securities to cryptocurrencies.
“Digital payments are key for euro-denominated markets and financial infrastructure,” said Floris Lugt, ING’s digital asset lead. “We believe this development requires an industry-wide approach, and it’s imperative that banks adopt the same standards.”
Stablecoin Push as Digital Euro Faces Delays
This initiative comes as the European Central Bank (ECB) continues its work on the digital euro, now projected to launch no earlier than 2029. ECB Executive Board member Piero Cipollone has suggested that a general framework for the digital euro will be ready by May 2026.
The slower timeline for the digital euro has led some observers to speculate that the bank-led stablecoin could fill the gap — or even render the CBDC redundant. Critics online have called the project a “digital euro’s obituary,” while others have described it as a “backdoor CBDC.”
Global Context: Stablecoins vs CBDCs
The preference for stablecoins over central bank digital currencies isn’t unique to Europe. In early 2025, the Trump administration in the US banned CBDC development, instead positioning dollar-backed stablecoins as the backbone of future digital payments.
With MiCA setting the global standard for crypto regulation, the European stablecoin project could emerge as a model for other regions looking to balance innovation with regulatory oversight.
