EU Banks Launch MiCA-Compliant Stablecoin to Counter US Dominance

ING, UniCredit, and seven other major European banks have announced a joint initiative to develop a MiCA-compliant euro stablecoin, positioning the project as a strategic response to the dominance of U.S.-issued stablecoins. The consortium includes ING, UniCredit, CaixaBank, Danske Bank, DekaBank, Raiffeisen Bank International, SEB, Banca Sella, and KBC. The stablecoin, regulated under the EU’s Markets in Crypto-Assets (MiCA) framework, aims to facilitate near-instant, low-cost cross-border payments and programmable transactions, leveraging blockchain technology to enhance financial infrastructureNine major European banks join forces to issue stablecoin | ING^[1]. The project is projected to launch in the second half of 2026, pending regulatory approvalsUniCredit, ING Among 9 Banks Launching Euro Stablecoin^[2].

The stablecoin will be issued through a newly established company in the Netherlands, which seeks licensing as an e-money institution under the Dutch Central Bank. This entity will oversee compliance with MiCA requirements, including 1:1 reserve backing and quarterly auditsNine European Banks Join Forces To Issue MiCA-Compliant Euro …^[3]. The initiative aligns with the EU’s broader goal of fostering a self-sufficient digital payments ecosystem, reducing reliance on foreign stablecoin providers such as Tether and Circle. Floris Lugt, ING’s digital assets lead, emphasized that the project requires “an industry-wide approach” to standardize digital payment systems across the blocNine major European banks join forces to issue stablecoin | ING^[1].

Regulatory compliance under MiCA imposes strict operational constraints, such as transaction limits of €200 million per day for asset-referenced tokens and mandatory reserve disclosures. The consortium’s stablecoin will be fully collateralized by euro assets, with reserves held in EU financial institutions to mitigate systemic risksImplementation Timeline - MiCA Papers^[4]. This aligns with the EU’s efforts to enforce monetary sovereignty, as highlighted by the mass delisting of non-compliant stablecoins like USDT from European exchanges in early 2025State of European Stablecoins: September 2025^[5]. The initiative also complements the European Central Bank’s ongoing digital euro project, which remains in a preparation phase with a tentative 2028 launchEuropean Stablecoin Regulations: 2025 Update^[6].

The market for euro-denominated stablecoins remains nascent, with a combined market capitalization of less than €350 million as of September 2025, representing less than 1% of the global stablecoin marketState of European Stablecoins: September 2025^[5]. However, the consortium’s entry is expected to accelerate institutional adoption, particularly as MiCA-compliant alternatives like Circle’s EURC and Société Générale’s EURCV gain tractionMiCA-Compliant Stablecoins: The New Standard for …^[7]. Analysts project the global stablecoin market could expand from $230 billion in 2025 to $2 trillion by 2028, underscoring the urgency for Europe to secure a competitive shareState of European Stablecoins: September 2025^[5].

The consortium’s structure remains open to additional bank participation, with a CEO appointment pending regulatory clearance. Each member bank will offer value-added services such as stablecoin wallets and custody solutions, diversifying revenue streams in the digital asset sectorNine major European banks join forces to issue stablecoin | ING^[1]. The project’s success hinges on balancing regulatory compliance with scalability, as MiCA’s transaction caps and compliance costs pose challenges for smaller issuersState of European Stablecoins: September 2025^[5].