A consortium of nine major banks from across Europe has revealed ambitious plans for a euro-backed stablecoin, scheduled for launch by 2026. This coordinated move could be the most significant attempt yet by traditional European banks to challenge the US dollar’s overwhelming leadership in global digital payments.
Organized under a new company headquartered in the Netherlands, the project will offer a strictly regulated digital currency option.
The Dutch Central Bank is set to supervise the effort, reinforcing the stablecoin’s credibility as a financial tool for the region.
Which banks are spearheading the euro stablecoin?
Nine financial giants are core to this initiative: ING, UniCredit, Banca Sella, KBC, Danske Bank, DekaBank, SEB, CaixaBank, and Raiffeisen Bank International.
These institutions represent a cross-section of Europe’s banking landscape, each bringing expertise in payments, compliance, and cross-border financial infrastructure.
The founding members formed a consortium and created a new firm in the Netherlands to lead the project.
This new entity will seek an official license as an e-money institution, ensuring supervision by Dutch regulators, while the group remains open to other banks joining.
Did you know?
The EU’s Markets in Crypto-Assets (MiCA) regulation will make Europe the first major region in the world with a dedicated stablecoin rulebook before their own central bank digital currency launches.
How will the stablecoin change digital payments in Europe?
The stablecoin is designed to enable rapid, cost-efficient transfers for both individuals and businesses. Unlike traditional bank transfers, transactions can be executed 24/7, including cross-border euro payments, which today remain slow and expensive compared to those using dollar-pegged cryptocurrencies.
Access to instant programmable payments and the ability to improve supply chain management are also at the heart of the plan.
Large European businesses, suppliers, and merchants could leverage these features to streamline settlements, improving transparency across digital supply networks.
What sets this coin apart from current stablecoins?
Euro stablecoins exist already but are tiny compared to the $200 billion market led by US dollar tokens. What makes this coin different is direct involvement from systemically important banks and strict compliance with the EU’s new Markets in Crypto-Assets (MiCA) regulation.
This project aims to offer the first MiCA-regulated, bank-led euro stablecoin. It will also operate transparently under oversight from European regulators and prioritize anti-money laundering measures, key privacy protections, and consumer rights.
ALSO READ | Why Is China Buying 1.3 Million Tons of Argentine Soybeans Now?
Why are European banks prioritizing financial sovereignty?
European policymakers and financial leaders have long expressed concern about the region's reliance on US dollar-based systems for both global trade and digital assets.
Only a tiny share of stablecoins currently reference the euro, which places the region at a disadvantage should US policy priorities shift.
By supporting a trustworthy, regulated digital euro, the banks aim to regain control in the payments industry while also promoting Europe's overall goals of technology independence and leadership in digital finance rules.
What adoption challenges lie ahead?
Despite having ample resources, the banking consortium cannot guarantee consumer trust or business adoption. Competing stablecoins already hold broad acceptance, particularly in crypto trading and cross-border transactions.
Education, clear communication, and interoperability with existing digital wallets and banking apps will be crucial.
The new coin’s MiCA compliance could give it a regulatory edge and foster confidence, but ongoing collaboration with industry, fintechs, and policymakers will be essential as the space evolves.
More banks may join once the regulatory path and early demand are clearer. As the stablecoin landscape continues to evolve, Europe’s largest lenders are betting on a secure, regulated, and transparent alternative to dollar-dominated digital payments.
The project’s success will depend on building real utility for users and establishing the euro as a true contender in the global digital finance ecosystem.
If successful, it may inspire additional cross-border currency projects and accelerate Europe’s long-term plans for digital innovation and economic autonomy.
Comments (0)
Please sign in to leave a comment