European Banks Launch Stablecoin to Counter US-Dollar Dominance

Nine European banks have announced plans to launch a euro-denominated stablecoin regulated under the European Union’s Markets in Crypto-Assets (MiCA) framework, marking a significant step toward a regulated digital payment ecosystem in the region. The consortium includes ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International. The banks have established a new company in the Netherlands, seeking licensing and supervision from the Dutch Central Bank as an e-money institution. The stablecoin is expected to debut in the second half of 2026Nine European Banks Join Forces To Issue MiCA-Compliant Euro Stablecoin^[1].

The initiative aims to create a European alternative to the U.S.-dominated stablecoin market, enhancing strategic autonomy in payments. The stablecoin will leverage blockchain technology to enable near-instant, low-cost transactions and 24/7 cross-border settlements. It will support programmable payments, supply chain improvements, and digital asset settlements, including securities and cryptocurrenciesNine major European banks join forces to issue stablecoin^[2]. By pooling resources and adopting a multi-bank approach, the consortium seeks to address scalability and liquidity challenges while adhering to MiCA’s stringent compliance requirements9 European Banks Team Up to Launch MiCA-Compliant Euro Stablecoin^[3].

Regulatory compliance is central to the project. The stablecoin will operate under MiCA, which mandates full reserve backing, transparency, and consumer protection measures. The consortium’s new entity will hold reserves equivalent to the stablecoin’s circulation, ensuring compliance with MiCA’s 100% reserve requirementsBig European banks form company to launch euro stablecoin^[4]. This aligns with broader EU efforts to establish a robust legal framework for crypto assets, which took effect in December 2024Stablecoins Regulations Under MiCA Statistics 2025 • CoinLaw^[5].

The banks emphasized the strategic importance of the initiative. Raiffeisen Bank International CEO Johann Strobl stated that stablecoins are a critical component of their digital asset strategy, offering faster and cost-effective transactions. ING’s Floris Lugt highlighted the efficiency gains from blockchain’s programmability and 24/7 settlement capabilities, underscoring the need for industry-wide collaborationTop MiCA-Compliant Stablecoins: USDT Alternatives for European Users^[6]. The project also reflects Europe’s ambition to reduce reliance on U.S. dollar-based stablecoins, which currently dominate 99.8% of the global marketHow Europe’s Stablecoin Adoption Is Growing USD Monopoly^[7].

The consortium remains open to additional banks joining, with a CEO expected to be appointed soon. Individual banks will offer value-added services such as stablecoin wallets and custody solutions, fostering ecosystem development. The initiative is part of a broader trend of euro-backed stablecoin growth, driven by MiCA’s regulatory clarity and the European Central Bank’s (ECB) push for monetary sovereigntyFrom hype to hazard: what stablecoins mean for Europe^[8]. Analysts note that euro-backed stablecoins could capture 30% of the EU market by 2025, up from 12% in 2023, as institutions seek regulated alternativesStablecoins Regulations Under MiCA Statistics 2025 • CoinLaw^[9].

The launch of the stablecoin underscores Europe’s strategic response to the global shift in digital finance. By creating a MiCA-compliant, euro-denominated payment instrument, the consortium aims to strengthen the euro’s role in digital ecosystems while mitigating risks associated with U.S. dollar dominance. The project aligns with the ECB’s broader digital euro initiatives and complements efforts to modernize cross-border payment systemsNine European Banks Launch Euro-Backed Stablecoin to Challenge US Dollar Dominance^[10]. As the EU continues to refine its regulatory framework, the success of this stablecoin could position Europe as a leader in blockchain-based financial innovationFrom hype to hazard: what stablecoins mean for Europe^[11].