A group of nine major European banks announced on Thursday the formation of a consortium to develop a euro-pegged stablecoin that will operate under the European Union’s Markets in Crypto-Assets (MiCA) regulation.
The initiative is scheduled to debut in the second half of 2026 and is intended to serve as a regulated European alternative to the US-dominated stablecoin market.
A new company in the Netherlands
The banks involved include ING, UniCredit, Banca Sella, CaixaBank, Danske Bank, Raiffeisen Bank International, KBC, SEB, and DekaBank. Together, they have established a new company headquartered in the Netherlands to oversee development, licensing, and management of the stablecoin.
The consortium emphasized that other European lenders may join the initiative and that the project will operate under the oversight of the Dutch Central Bank.
Stablecoin designed for 24/7 payments
According to the announcement, the euro stablecoin will be built to deliver near-instant, low-cost settlements and cross-border transactions around the clock. It will also support programmable payments, supply chain management tools, and digital asset settlements covering securities and cryptocurrencies.
“The initiative will provide a real European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments,” the banks stated.
The launch comes as the European Central Bank’s proposed digital euro project remains years away. ECB board member Piero Cipollone recently indicated that a digital euro may not become a reality until 2029, with the European Parliament expected to outline a legal framework in 2026.
This delay has led some commentators to describe the stablecoin project as a “backdoor digital euro.” Others view it as an interim solution, filling the gap until a central bank digital currency is ready.
The euro project follows a period of renewed interest in stablecoins worldwide. In the United States, the Trump administration has halted CBDC development while backing dollar-pegged stablecoins as part of its financial policy.
The total USD stablecoin supply stood at 281.7 billion this week, while euro stablecoins on Ethereum reached 319.1 million, a small but growing share.
By launching a MiCA-compliant euro stablecoin, European banks are seeking to position themselves at the center of this expanding digital asset infrastructure, combining regulatory oversight with private-sector innovation.
