Global: European Banks Collaborate to Launch Euro-Backed Stablecoin

A consortium of leading European banks, spearheaded by ING, has announced plans to launch a euro-backed stablecoin, aimed at reshaping the region’s digital payments landscape. Participating institutions include CaixaBank, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, and Raiffeisen Bank International.

Developed in line with the EU’s Markets in Crypto-Assets Regulation (MiCAR), the stablecoin will leverage blockchain technology to deliver instant, low-cost cross-border payments and settlements. Member banks will also be able to offer value-added services, such as stablecoin wallets and custody solutions.

According to Mariona Vicens, Head of Digital Transformation and Advanced Analytics at CaixaBank, the initiative provides a much-needed European alternative to a market currently dominated by US dollar-backed stablecoins, which account for around 99% of global stablecoin market capitalisation. In contrast, euro-denominated stablecoins remain marginal, with a combined market value of less than €350 million.

“Technology is profoundly transforming financial infrastructure, especially in the way payments and transactions are made,” Vicens noted. “This project represents an important step toward building a reliable European digital payments ecosystem and strengthening Europe’s strategic autonomy in payments.”

The stablecoin is slated for issuance in the second half of 2026. To facilitate operations, the consortium has established a company in the Netherlands, with plans to obtain licensing and supervision from the Dutch Central Bank as an e-money institution. A CEO is expected to be appointed shortly, subject to regulatory approval, and the group remains open to new banking partners.

Floris Lugt, Digital Assets Lead at ING, emphasised the efficiency gains of the project: “Euro-denominated digital payments, powered by blockchain’s programmability and real-time settlement, offer transparency and speed. This initiative requires an industry-wide approach, with banks aligning on common standards.”

The move is expected to garner support from European policymakers, who have voiced growing concerns over the dominance of US dollar stablecoins in the region. Jürgen Schaaf, Advisor at the European Central Bank’s Market Infrastructure and Payments Division, recently warned that failing to support properly regulated euro stablecoins could pose strategic risks.

“Euro-based stablecoins, if built on strong risk management and high standards, can meet legitimate market needs while reinforcing the euro’s global role,” Schaaf observed.

With Europe accelerating efforts to strengthen its digital financial sovereignty, the launch of a euro stablecoin represents a pivotal step in balancing innovation, competition, and strategic independence in the evolving payments ecosystem.