Nine EU banks to launch stablecoin

Nine major European banks have formed a consortium to launch the EU's first major bank-backed euro stablecoin under the Markets in Crypto-Assets (MiCA) regulation, marking a significant step toward European monetary sovereignty in the digital asset space.

The Banking Powerhouse

The consortium brings together financial heavyweights including ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International. If successful, this coordinated effort by established financial institutions to create a "trusted European payment standard" could seek to provide an alternative to US dominated stablecoins.

The initiative establishes a new Dutch company that will seek licensing from the Dutch Central Bank as an e-money institution, with the stablecoin expected to launch in the second half of 2026. The consortium remains open to additional banking partners, suggesting this could grow into an even larger European financial alliance.

Strategic Timing and Market Context

This announcement comes at a critical juncture for European digital finance. While US stablecoins like USDT and USDC have dominated global markets, MiCA's implementation has created both challenges and opportunities. Major exchanges have been delisting non-compliant tokens, with Coinbase removing USDT for EU customers in December 2024 and Crypto.com following suit by March 2025.

The banking consortium's approach differs markedly from existing stablecoin models. Rather than relying on a single issuer, this distributed approach leverages the combined infrastructure and regulatory standing of multiple major banks across different EU jurisdictions. Each participating bank can offer value-added services like custody and wallet solutions while maintaining compliance with MiCA's strict reserve requirements.

Technical and Regulatory Innovation

The stablecoin will enable 24/7 cross-border payments, programmable transactions, and enhanced supply chain management—features that traditional banking infrastructure struggles to provide efficiently. By building on blockchain technology while maintaining full regulatory compliance, the consortium aims to bridge the gap between traditional finance and digital innovation.

MiCA's requirements for full reserve backing, regular audits, and transparent reporting create a framework that could strengthen rather than hinder this banking-led approach. Unlike crypto-native issuers who must build compliance infrastructure from scratch, these banks already possess the regulatory expertise and capital reserves necessary for MiCA compliance.

Competitive Implications

As Floris Lugt from ING noted, the initiative requires "an industry-wide approach" with banks adopting common standards. This coordinated response suggests European financial institutions recognize that digital currency infrastructure is too important to be left entirely to non-European players.

The timing also coincides with broader regulatory developments, including the recent passage of the US GENIUS Act, which creates similar frameworks for stablecoin regulation. However, the European approach emphasizes multi-bank collaboration rather than single-issuer dominance, potentially creating more resilient and distributed digital payment infrastructure.

For businesses and developers, this bank-backed stablecoin could offer the regulatory certainty and institutional backing that many have been waiting for to build serious financial applications on blockchain infrastructure. The combination of established banking relationships, regulatory compliance, and modern payment rails could accelerate adoption of programmable money in European markets.

The success of this consortium will likely influence how other regions approach central bank digital currencies and private stablecoin regulation, making it a development worth watching closely as digital finance continues to evolve.

First published at BitsofBlocks.io and reproduced with permission.