EU banks join hands to launch MiCA-compliant Euro stablecoin

Nine European Union (EU) banks are collaborating to launch a fully compliant euro-backed stablecoin, aiming to rival US-dollar-denominated crypto assets in the region.

ING, Banca Sella, KBC and others plan to launch MiCA-compliant Euro stablecoin

A group of major European banks, including ING, UniCredit, Danske Bank, CaixaBank and SEB, are collaborating on a Euro-backed stablecoin project, according to a statement on Thursday. The project seeks to provide a European alternative to US Dollar-backed stablecoins.

The consortium stated that it has established a Netherlands-based entity to oversee the initiative and is aiming for a Dutch Central Bank license for the new company.

The group also expressed plans to appoint a CEO for the newly formed company in the near future, pending regulatory approval. They also expressed an interest in expanding the initiative by accepting more banking partners.

The new stablecoin will fall under the EU's Markets in Crypto-Assets (MiCA) regulation and is slated for a potential launch in the second half of 2026.

"We believe this development requires an industry-wide approach, and it's imperative that banks adopt the same standards," said Floris Lugt, Digital Assets lead at ING and joint public representative of the initiative.

The EU has been strengthening its grip on the crypto sector over the past few years, following the bloc's issuance of the MiCA regulation in 2023. Since then, cryptocurrency activities have undergone stricter procedures, including those related to stablecoin transactions.

Following the enactment of the GENIUS Act in the US in July, the EU reportedly began accelerating its plans for a digital Euro, with expectations of a launch on the Ethereum or Solana blockchain.

USDC holds a significant portion of the stablecoin market in the region after Circle obtained the first US Dollar-pegged digital currency license under MiCA law last year. The development was accompanied by the delisting of Tether's USDT across several European exchanges due to non-compliance with EU regulations, resulting in a decline in market demand from the region.

Although there are already Euro-backed stablecoins in the region, the market is still widely dominated by US Dollar-pegged crypto assets. The introduction of a fully compliant stablecoin through a collaboration of European banks aims to level the playing field, offering a more native option for users.