European Banks Harness MiCA to Establish Euro as Digital Currency Leader

ING, UniCredit, and other European banks are preparing to launch MiCA-compliant euro stablecoins by the second half of 2026, signaling a pivotal shift in the continent’s digital asset landscapeING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot^[1]. Dutch bank ING, in collaboration with a consortium of financial institutions, is developing a euro-denominated stablecoin under the European Union’s Markets in Crypto-Assets (MiCA) regulatory frameworkING Moves to Launch Euro Stablecoin in Compliance with MiCA Regulations^[2]. This initiative aligns with broader efforts by European banks to capitalize on the growing demand for regulated digital currencies, as the EU’s stringent rules reshape the stablecoin marketDutch Banking Giant ING Reportedly Developing MiCA-Compliant Stablecoin^[3].

MiCA, which became enforceable in December 2024, mandates that stablecoin issuers obtain licenses, maintain 1:1 reserves in European banks, and adhere to transparency requirementsEuropean Stablecoin Regulations: 2025 Update^[4]. The regulation has already driven major U.S.-based players like Tether to exit the euro-denominated stablecoin space, creating opportunities for compliant alternatives such as Circle’s EURCDutch Bank ING Said to Be Working on a New Stablecoin^[5]. ING’s project, still awaiting regulatory and board approvals, underscores the cautious approach banks are taking to comply with MiCA’s requirementsING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot^[1]. The bank’s stablecoin would compete with France’s Société Générale, which launched its EUR-backed token through its digital division, SG FORGEING Moves to Launch Euro Stablecoin in Compliance with MiCA Regulations^[2].

The consortium model highlights the collaborative nature of MiCA-compliant initiatives. ING’s partnership with other banks reflects the regulatory and operational complexities of establishing a joint entity under the new frameworkING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot^[1]. Progress has been slow, with participating institutions navigating board-level approvals and compliance hurdlesDutch Banking Giant ING Reportedly Developing MiCA-Compliant Stablecoin^[3]. However, the regulatory clarity provided by MiCA has accelerated innovation, with UniCredit and other major players reportedly exploring similar projectsStablecoin Regulations: U.S. vs EU Strategies^[6]. This collective effort aims to fill the void left by non-compliant stablecoins and position European banks as key players in the digital euro ecosystem.

The market for euro-backed stablecoins is gaining momentum as MiCA strengthens consumer trust and institutional participation. JPMorgan analysts note that compliant offerings like EURC have outperformed opaque alternatives, such as Tether, due to their adherence to reserve and transparency standardsDutch Bank ING Said to Be Working on a New Stablecoin^[5]. The EU’s regulatory push has also spurred infrastructure developments, including Circle’s Circle Payments Network (CPN), which enables real-time cross-border payments using EURC and USDCING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot^[1]. These advancements align with the European Central Bank’s (ECB) broader goals of promoting digital euro adoption, despite delays in its official launch.

Challenges remain, particularly in balancing innovation with regulatory compliance. While MiCA has streamlined oversight, the process of securing licenses and maintaining reserve requirements remains resource-intensiveEuropean Stablecoin Regulations: 2025 Update^[4]. Smaller issuers and crypto firms have exited the EU market, with TRM Labs reporting that only 17 companies secured MiCA authorizations by mid-2025Dutch Banking Giant ING Reportedly Developing MiCA-Compliant Stablecoin^[3]. However, the entry of established banks like ING and UniCredit is expected to stabilize the market, fostering competition and driving adoption. The ECB’s concerns about the dominance of U.S.-denominated stablecoins further underscore the urgency for euro-based alternativesStablecoin Regulation Around The World: 2025 Overview^[7].

Looking ahead, the euro stablecoin market is projected to grow significantly, with global supply reaching $2 trillion by 2028. European banks are positioning themselves to capture a substantial share of this growth by leveraging MiCA’s frameworkU.S. vs. EU Stablecoin Regulation: How the Revised STABLE Act Stacks Up^[8]. The ECB’s digital euro project, though delayed, remains a long-term complement to private stablecoin initiatives. As the regulatory landscape matures, the EU’s approach—prioritizing financial stability and consumer protection—contrasts with the U.S.’s more innovation-focused GENIUS ActStablecoin Regulations: U.S. vs. EU (2025)^[9]. This divergence highlights the strategic importance of the euro in Europe’s digital financial future.

ING’s and UniCredit’s efforts exemplify the transformative potential of MiCA. By aligning with the EU’s regulatory priorities, these banks are not only addressing compliance challenges but also shaping the next phase of digital finance in Europe. As the second half of 2026 approaches, the success of their stablecoins could set a precedent for broader adoption, reinforcing the euro’s role in a rapidly evolving global payments ecosystem.