Nine of Europe’s leading banks have unified to issue a stablecoin indexed 1:1 to the Euro, compliant with MiCA regulations, marking a significant move into the cryptocurrency market. This consortium, which includes giants like ING, UniCredit, and CaixaBank, has applied for a license from the Dutch Central Bank. The new stablecoin is projected to launch in the second half of 2026.
Consortium’s Euro-Indexed Stablecoin Plan
According to the official announcement, ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International have established a new company to issue a stablecoin indexed to the Euro on a 1:1 basis. The consortium aims to create a trusted payment standard across Europe. With each bank managing billions of dollars in assets and having extensive customer bases, the stablecoin is expected to reach a wide audience swiftly.
The stablecoin’s design aligning with MiCA regulations will offer legal assurance for digital payments within Europe. The consortium stated that an application for an e-money license has been submitted to the Dutch Central Bank. After receiving regulatory approval, a CEO will be appointed, and more banks may join the initiative.
Fiona Melrose, the Head of Strategy and ESG at UniCredit, emphasized that their participation in the consortium would contribute to the development of a reliable and regulated on-blockchain payment solution. The statement highlighted the stablecoin’s strategic importance for Europe’s financial sovereignty and growth.
Market Impact of the Euro Stablecoin
The new Euro stablecoin aims to strengthen Europe’s payment systems in response to the rapidly growing market dominance of U.S.-based stablecoins. The increasing use of dollar-backed stablecoins like USDT and USDC has underscored the need for a local European stablecoin. Through this initiative, the consortium banks are expected to offer customers wallets, custodial services, and fast payment solutions.
The MiCA regulations coming into effect in December 2024 have boosted demand for stablecoins. The consortium’s plan for the Euro stablecoin is to facilitate 24/7, low-cost, and rapid transfers. This will make cross-border payments, programmable financial transactions, supply chain management, and digital asset settlements more accessible.
Currently, leading projects in the Euro-based stablecoin market include Circle’s EURC, STASIS EURO, EUR CoinVertible, and Tether’s EURT. With a market value of $259.7 million, Circle’s EURC holds a leadership position. The joint stablecoin venture by these banks is likely to intensify competition in this space.
