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This is big folks…its hotting up – nine of Europe’s largest banks have unveiled plans to issue a euro-denominated stablecoin by 2026, in a move that could reshape the digital payments landscape and address long-standing concerns over the dominance of dollar-backed tokens.
European banks launch bid for euro stablecoin
Led by ING, the consortium includes CaixaBank, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB and Raiffeisen Bank International.
Together, the group has incorporated a new entity in the Netherlands and will seek licensing from De Nederlandsche Bank as an electronic money institution (EMI).
If granted, the stablecoin will be fully compliant with the EU’s forthcoming Markets in Crypto-Assets Regulation (MiCA).
Significant Strategic Shift
The project represents a significant strategic shift for European banking, but also the sheer frustration at the pace with which European regulators are moving.
While European legislators continue to fret about euro based sovereign payments systems, dollar-based stablecoins currently account for more than 99% of global market capitalisation – euro-denominated tokens remain marginal at under €350 million.
With US policymakers pushing ahead on stablecoin regulation, European banks are keen to avoid ceding ground in a sector that is rapidly becoming integral to global payments and settlement.
Floris Lugt, digital assets lead at ING, said the initiative required an “industry-wide approach” to set common standards for tokenised money.
Mariona Vicens, head of digital transformation at CaixaBank, described the project as an important step in strengthening Europe’s “strategic autonomy” in financial infrastructure.
The “Eurocoin”
The stablecoin will be backed one-to-one with euro reserves, held in segregated accounts and invested in low-risk liquid assets, ensuring full redemption rights for holders.
Built on blockchain, the instrument is expected to enable 24/7 instant settlement, cross-border payments and programmability features—capabilities that traditional payment systems still struggle to deliver.
For policymakers, the initiative may provide a welcome counterweight to the overwhelming role of the US dollar in digital assets.
Jürgen Schaaf, an advisor to the European Central Bank’s Market Infrastructure division, has warned that failing to support properly regulated euro stablecoins could create a “strategic blind spot”.
The ECB’s own digital euro project, meanwhile, has been repeatedly delayed, with some officials indicating that a central bank digital currency may not be launched before 2029.
The banking consortium’s initiative could therefore act as both a bridge and a testing ground for Europe’s eventual CBDC, while offering businesses and consumers earlier access to regulated programmable money.
If successful, the move would mark one of the most ambitious attempts to fuse Europe’s traditional banking sector with blockchain technology—potentially accelerating the continent’s transition to a hybrid system of public and private digital money.
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