European Banks Embrace Stablecoins For Real-World Payments

European banks and startups are increasingly embracing stablecoins as a means to facilitate real-world payments, driven by the surge in demand for stable digital assets. In Italy, Banca Sella, which manages over €66 billion in assets, has begun a limited trial of Fireblocks’ crypto custody software with a small group of employees. This program, which runs through the end of summer, will help the bank decide whether to roll out crypto storage services to its 1.4 million clients. The move comes as other major Italian institutions take steps into crypto, with Intesa Sanpaolo launching a spot bitcoin desk in January and UniCredit preparing a capital-protected note tied to BlackRock’s IBIT ETF. Société Générale is also expanding its lineup of fiat-backed stablecoins.

In Berlin, startup Ivy has integrated Circle's USDC and EURC stablecoins into its 24/7 payments platform. This move allows crypto firms, payment providers, and e-commerce businesses to make instant bank payments, settle in local European currencies, and seamlessly convert to or from stablecoins. Ivy’s backend system supports real-time settlement, designed to run continuously without weekend or holiday interruptions. “Real-time bank rails and stablecoins go hand in hand,” said Ferdinand Dabitz, Ivy’s CEO and co-founder. “With Circle’s USDC and EURC now live on our platform, customers can move between fiat and digital assets instantly—day or night.”

Circle, which went public earlier this year, has been expanding its presence in global payments. In April, it launched the Circle Payments Network, aiming to bridge the gap between blockchain settlement and traditional finance. Meanwhile, new data from payments app Oobit points to a steady uptick in everyday crypto use across Europe, particularly with stablecoins. Over the past month, 75% of all transactions on the platform were settled in stablecoins like USDR, EURR, and USDC. The strongest activity was in retail and travel-related categories, with Poland, Lithuania, and Estonia showing the most growth. Poland accounted for more than 30% of food and retail purchases via stablecoins, while Lithuania saw a 100% jump in EURR transactions compared to the previous month. Estonia, known for its digital-first infrastructure, saw more than half of Oobit payments settled in stablecoins.

“People aren’t just holding crypto—they’re spending it,” said Oobit CEO Amram Adar. “Whether it’s a coffee in Warsaw or a hotel in Barcelona, stablecoins are quickly becoming part of everyday life.” With Europe’s MiCA regulatory framework phasing in, countries like Lithuania are seeing a rush of license approvals. Robinhood Europe secured its MiCA-compliant license this month, further cementing the region as a proving ground for regulated crypto adoption.

The adoption of stablecoins is particularly significant for emerging markets grappling with high inflation. These markets find stablecoins to be a critical tool for maintaining financial stability. However, the process of accessing and spending these assets remains challenging, underscoring the need for further development in the infrastructure supporting stablecoin transactions. Stablecoins have the potential to revolutionize cross-border transactions by reducing costs and enhancing financial efficiency. This is particularly relevant in Europe, where stablecoins are responsible for a significant portion of crypto transactions. The integration of stablecoins into traditional financial systems is not without its challenges, but the benefits in terms of cost savings and efficiency are compelling.

Institutional interest in cryptocurrency, including stablecoins, has surged, with major financial players advocating for increased adoption. This trend is evident in the venture by Deutsche Bank's DWS, Galaxy, and Flow Traders, which teased the AllUnity EURAU stablecoin. This stablecoin is designed to comply with Europe's Markets in Crypto Assets (MiCA) framework, demonstrating a commitment to regulatory compliance and institutional adoption. The real-world utility of stablecoins is becoming increasingly apparent, with their use cases expanding beyond speculative investments. Stablecoins are being used for payroll, remittances, and other everyday transactions, challenging the dominance of volatile cryptocurrencies. This shift is driven by the need for stable and reliable digital assets that can be used for practical purposes.

The momentum behind stablecoins is seen as a pivotal opportunity for the crypto ecosystem to demonstrate its real-world utility. As more banks and startups embrace stablecoins, the infrastructure supporting these digital assets is likely to improve, making them more accessible and user-friendly. This trend is expected to continue, with stablecoins playing an increasingly important role in the global financial system.