Nine European Banks Unite to Launch Euro-Backed Stablecoin in 2026
News Publisher Sep 29, 2025 14:10
Nine European banks, including ING, UniCredit, and CaixaBank, plan to launch a euro-pegged stablecoin by 2026, offering a European alternative to the US-dominated market.
A coalition of nine major European banks is gearing up to launch a euro-pegged stablecoin by the second half of 2026. This initiative, spearheaded by prominent banks like ING, UniCredit, and CaixaBank, aims to provide a European alternative to the US-dominated stablecoin market. The move comes under the European Union's Markets in Crypto-Assets (MiCA) regulatory framework, positioning the stablecoin to become a trusted digital payment standard across the continent.
A Collaborative Effort for Digital Payment Innovation
The euro-backed stablecoin is designed to provide nearly instantaneous and low-fee payments on blockchain rails. This will enable 24/7 cross-border payments, assist supply chain management, and facilitate settlements for digital assets (securities as well as cryptocurrencies). A key feature of this stablecoin is its compatibility with Web3 wallets, which serve as digital interfaces for consumers and businesses to store tokens, make payments to merchants, and utilize Web3 services. For companies that conduct trade globally, these wallets would facilitate the movement of euro-backed stablecoins more quickly, transparently, and audibly than current bank systems.
The group of banks, which includes CaixaBank from Spain, DekaBank from Germany, and Danske Bank from Denmark, among others, sees the stablecoin launch as a step toward greater European independence in the payments space. "Digital payments are the foundation for new euro-denominated payments and financial market infrastructure," said Floris Lugt, ING's Digital Assets lead, in a joint statement. He explained that a successful approach would depend on working from a consistent plan across the entire industry.
Euro-Pegged Stablecoin to Challenge US Dominance
The timing of this initiative coincides with growing concerns across Europe regarding US-dollar-backed stablecoins, such as Tether’s USDT and Circle’s USDC. As regulatory frameworks like MiCA gain momentum, a new euro stablecoin is expected to decrease Europe’s dependence on foreign currencies in digital payments. In an effort to offer an alternative that is compliant with local regulations, this stablecoin development will contribute to the broader European objective of increasing its strategic autonomy in digital finance.
Collaborative Structure and Future Plans
The banks participating in the project have established a new entity in the Netherlands to oversee the development and operation of the stablecoin. The consortium plans to apply for a license from the Netherlands Central Bank, classifying the project as an "e-money institution" to comply with the European financial regulatory framework. The consortium is open to onboarding additional banks during the project phase, suggesting that these banks may support the project in due time in the coming months.
It is expected that each participating bank will provide various value-added services related to the stablecoin, such as wallet/custodial services for businesses and consumers. These value-added services will likely play a crucial role in integrating the stablecoin into the broader financial ecosystem.
The Road Ahead for Digital Euro Alternatives
While it will likely take Europe several years to launch its own central bank digital currency (CBDC) (potentially until 2029), this euro-pegged stablecoin represents a quicker path for Europe to provide the region with a digital currency solution. There are even observers suggesting that the stablecoin may serve as a “backdoor CBDC,” providing similar functionalities to those of a government-backed CBDC, but without the waiting times typically associated with digital currencies that require government regulatory approval.
As this stablecoin project unfolds, it would be difficult to ignore the banking giants coming together to create a new era of digital payments in Europe. This era could significantly alter the European financial landscape, presenting new opportunities for businesses that utilize the newly introduced digital currency payment system and crypto wallets.
Image source: Shutterstock.jpg)