Nine major European financial institutions have joined forces to develop and launch a euro-denominated stablecoin, aiming to provide “a real European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments”, according to a joint statement.
The consortium includes Danske Bank, ING, Banca Sella, CaixaBank, KBC, DekaBank, UniCredit, SEB, and Raiffeisen Bank International, with an open invitation for additional banking partners to join the venture.
Scheduled for initial issuance in H2 2026, the MiCAR-compliant digital currency will provide around-the-clock, near-instant cross-border transactions, while also aiming to enhance supply chain management and digital asset settlement processes.
According to a recent report by CNBC, US-issued stablecoins currently represent approximately 99% of the total stablecoin market capitalisation.
ING’s digital assets lead, Floris Lugt, states: “Digital payments are key for new euro-denominated payments and financial market infrastructure. They offer significant efficiency and transparency, thanks to blockchain technology’s programmability features and 24/7 instant cross-currency settlement. We believe this development requires an industry-wide approach, and it’s imperative that banks adopt the same standards.”
The stablecoin consortium has established a new entity in the Netherlands which aims to acquire licensing and supervision from the Dutch central bank as an e-money institution, with the appointment of a CEO anticipated “in the near future”.
This development comes amid increasing innovation in the stablecoin sector, including Paxos’ introduction of its Global Dollar (USDG) in Singapore in late 2024, and Milan-based start-up Plasma’s recent launch of Plasma One, which it describes as the industry’s first neobank specifically designed for stablecoin users.
