European Banks Unite for Digital Sovereignty via MiCA-Regulated Stablecoin

Nine major European banks have announced a collaborative initiative to launch a euro-backed stablecoin regulated under the European Union’s Markets in Crypto-Assets (MiCA) framework. The project, set to debut in the second half of 2026, aims to establish a European alternative to the U.S.-dominated stablecoin market, enhancing strategic autonomy in digital payments. The consortium includes ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International, which have formed a new company in the Netherlands to oversee the stablecoin’s development and seek licensing from the Dutch Central Bank as an e-money institution Nine European banks join forces to issue MiCA-compliant euro stablecoin^[1].

The stablecoin, designed to operate on blockchain technology, will enable near-instant, low-cost transactions and 24/7 cross-border payments. It will also support programmable payments and digital asset settlements, including securities and cryptocurrencies, according to the banks’ joint statement. This initiative aligns with Europe’s broader goals to strengthen financial sovereignty and reduce reliance on foreign stablecoins. “Digital payments are key for new euro-denominated payments and financial market infrastructure,” said Floris Lugt, ING’s digital asset lead. “Collaboration among European institutions is essential to build trust and adopt unified standards” Nine European Banks to Launch MiCA Euro Stablecoin: Here's the timeline^[2].

Regulatory compliance is central to the project. Under MiCA, stablecoins must maintain 1:1 reserves with liquid assets, undergo regular audits, and obtain authorization as electronic money institutions (EMIs). The consortium’s new entity will adhere to these requirements, ensuring transparency and consumer protection. The Dutch Central Bank’s supervision will further reinforce the stablecoin’s credibility. The group remains open to additional banks joining the initiative, aiming to broaden adoption across the EU UniCredit, ING Among 9 Banks Launching Euro Stablecoin^[3].

The stablecoin’s benefits extend beyond payments. It is expected to streamline supply chain management, improve efficiency in cross-border transactions, and reduce costs for businesses and consumers. Fiona Melrose, UniCredit’s Head of Group Strategy and ESG, emphasized the initiative’s potential to address demand for on-chain payment solutions while supporting economic growth. “This project positions Europe to compete in the evolving digital finance landscape,” she noted Euro Stablecoin: ING, UniCredit, and Banks Launch 2026 Plan^[4].

The timeline for the stablecoin’s launch includes securing regulatory approvals and appointing a CEO by late 2025. Technical and operational challenges, such as integrating blockchain infrastructure with existing financial systems, will be addressed over the next 18 months. Adoption will depend on partnerships with merchants and payment platforms, as well as demonstrating clear advantages over traditional methods. If successful, the stablecoin could reshape Europe’s digital payment ecosystem and inspire similar projects globally Euro Stablecoin Launch 2026 Gains MiCA Approval^[5].

The initiative also reflects broader trends in the EU’s crypto regulatory environment. MiCA’s strict requirements have already led to the delisting of non-compliant stablecoins like Tether’s USDT on major exchanges. In contrast, MiCA-compliant alternatives such as USDC and EURC have gained traction, highlighting the importance of regulatory alignment. The consortium’s euro-backed stablecoin is positioned to fill this gap, offering a secure and transparent option for European users Which stablecoins are MiCA-compliant in the EU?^[6].