A remarkable European collaboration: nine major European banks, including ING, UniCredit, and KBC, have announced that they will jointly develop their own euro-backed stablecoin. This digital currency, which will comply with the EU‘s MiCA regulations for crypto-assets, is expected to launch in the second half of 2026.

Where Does the Idea of a Euro Stablecoin Come From?

In Europe, there is a growing demand for reliable and regulated digital payment methods. So far, stablecoins pegged to the US dollar, such as USDT and USDC, have dominated the market. The participating banks see an opportunity to offer an alternative that better reflects “eurozone interests”, including lower cross-border costs, faster settlement, and greater financial sovereignty.

The fact that the stablecoin will be MiCA-compliant is crucial: EU regulations impose strict requirements on stablecoin issuers regarding reserve policies, transparency, and consumer protection. By operating within the MiCA framework, the banks aim to reduce risks and build trust.

What Are the Banks Doing?

ING has issued a joint statement confirming that nine banks in total are participating. Alongside ING, this includes UniCredit (Italy), CaixaBank (Spain), Danske Bank (Denmark), Raiffeisen Bank International (Austria), KBC (Belgium), SEB (Sweden), DekaBank (Germany), and Banca Sella (Italy). This announcement follows shortly after ECB board member Piero Cipollone stated that the digital euro, the EU‘s planned central bank digital currency (CBDC), may not be realised before 2029.

The banks have together established a new company headquartered in the Netherlands. This entity will be responsible for developing and managing the stablecoin. They also indicate that additional parties may join the project in the future.

The goal of the initiative is to provide a reliable European alternative to the current stablecoin market. At present, this market is largely dominated by US providers such as Tether and Circle. Meanwhile, Asian markets, including Hong Kong and South Korea, are also making significant progress. The plans of these nine European banks represent a clear attempt to strengthen Europe‘s strategic autonomy in digital payments.

What Does This Mean for Users?

If everything goes according to plan, the new stablecoin could bring:

• Faster and cheaper payments: 24/7, cross-border, with fewer intermediaries.
• A more reliable alternative to dollar-backed stablecoins in Europe. For users who want to transact without exposure to currency risk outside the euro, this could be attractive.
• New standards: leveraging blockchain technology, enabling programmable payments (smart contracts), better transparency, and potentially services such as secure wallets and custody solutions.

Opportunities and Risks of the Euro Stablecoin

While the plan is promising, some uncertainties remain:

• The stablecoin must maintain sufficient reserves (above €10,000 or equivalent) and transparency to build trust.
• Regulation remains a challenge; even with MiCA in effect, regulators such as the European Central Bank (ECB) have raised concerns about financial stability and the impact of stablecoins on monetary policy.
• Adoption is not guaranteed: both consumers and businesses must trust the coin, which will take time.

Conclusion

The initiative by ING and the other banks to launch a euro stablecoin is a significant step towards the digitalisation of payments in Europe. It offers opportunities for lower costs, faster transactions, and enhanced financial sovereignty. However, its success will depend heavily on regulation, trust, and technical execution.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any financial decisions.