Nine European banks have collaborated to launch a euro-denominated stablecoin aimed at competing with dollar-dominated tokens.
Banks supporting this ING-led initiative include CaixaBank, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, and Raiffeisen Bank International. Developed in accordance with the European Union’s Regulation on Cryptocurrency Markets (MiCAR), this digital payment instrument utilizes blockchain technology to enable near-instant, low-cost cross-border payments and settlements. Individual banks will also be able to offer value-added services such as stablecoin wallets and custody solutions.
Mariona Vicens, head of digital transformation and advanced analytics at CaixaBank, remarks that this initiative provides a viable European alternative to the US-controlled stablecoin market. Currently, US dollar-based stablecoins comprise about 99% of the total market capitalization, while euro-denominated stablecoins remain minimal, with a market cap of less than €350 million.
Vicens emphasizes that “technology is profoundly transforming the financial infrastructure and payment standards. We believe this initiative can significantly contribute to creating a robust European digital payments ecosystem, enhancing Europe’s strategic autonomy.”
The stablecoin is projected to be issued in the second half of 2026. A new company has been formed in the Netherlands to seek licensing and supervision from the Dutch Central Bank as an e-money institution, with the consortium open to additional bank participation. A CEO is expected to be appointed soon, pending regulatory approval.
Floris Lugt, digital assets lead at ING, states: “Digital payments are crucial for new euro-denominated payment and financial market infrastructure. They offer considerable efficiency and transparency, thanks to blockchain’s programmability and 24/7 instant cross-currency settlement capabilities. An industry-wide approach is needed, and it’s essential that banks adopt consistent standards.”
European policymakers are likely to welcome this initiative, as concerns about the influence of US dollar stablecoins within the bloc have grown. In July, Jürgen Schaaf, an economist and advisor to the European Central Bank’s Market Infrastructure and Payments division, cautioned that support for properly regulated euro-denominated stablecoins is vital to counter the risks posed by US dollar-backed tokens. He noted, “While neutrality of public institutions is often favored, neglecting this area could be detrimental. Euro-based stablecoins, if designed with high standards and effective risk mitigation, could fulfill legitimate market needs and strengthen the euro’s international role.”