Nine Banks Launch Euro Stablecoin Project Under MiCA

A group of major European banks has joined forces to launch a euro-pegged stablecoin in accordance with the European Markets in Crypto-Assets (MiCA) framework.

Dutch ING and Italian UniCredit are among the nine banks participating in the development of a euro-denominated stablecoin, according to a joint statement released by ING on Thursday.

Built in compliance with European regulations, the stablecoin is expected to be issued in the second half of 2026, with the mission of becoming a reliable European payment standard in the digital ecosystem.

The statement notes that the initiative aligns with European plans to provide a local alternative to the US-dominated stablecoin market and to contribute to the EU’s strategic autonomy in payments.

Banks from eight EU countries

In addition to ING and UniCredit, the European stablecoin initiative also includes Spanish CaixaBank, Danish Danske Bank, Austrian Raiffeisen Bank International, Belgian KBC, Swedish SEB, German DekaBank, and another Italian bank, Banca Sella.

The founders have also established a new company based in the Netherlands, ING’s home country, which will oversee the development and management of the stablecoin.

The banking consortium stated in a joint announcement that it remains open for other banks to join the stablecoin project.

24/7 access to cross-border payments

According to ING’s statement, the proposed euro stablecoin is expected to enable near-instant, low-cost payments and settlements, providing 24/7 access to cross-border payments.

The stablecoin is also expected to offer programmable payments and improvements in supply chain management and digital asset settlement, which can range from securities to cryptocurrencies.

– Digital payments are crucial for new euro payments and financial market infrastructure – said Floris Lugt, ING’s head of digital assets and joint public representative for the project.

– We believe this development requires an industry-wide approach and that it is imperative for banks to adopt the same standards – he added.

Digital Euro Delayed

The announcement of the joint stablecoin project by leading European banks came shortly after European Central Bank Executive Board member Piero Cipollone assessed that a digital euro could become a reality by 2029.

Cipollone, who also serves as Deputy Governor of the Bank of Italy, emphasized that the European Parliament is largely expected to outline the general framework for the proposed central bank digital currency (CBDC) by May 2026.

Given the prolonged development of the potential European CBDC, which has been under consideration since 2020, some online commentators have described the launch of the new stablecoin as a ‘death notice for the digital euro.’

Others speculated that the upcoming stablecoin could serve as a ‘backdoor CBDC,’ although, by definition, a CBDC is issued directly by a central bank.

The preference for stablecoins over CBDCs is not without precedent. In early 2025, the Trump administration made a historic decision to ban the development of CBDCs in the US, while simultaneously committing to promote dollar-backed stablecoins as a key component of its financial strategy.