A consortium of major European banks has joined forces to launch a euro-pegged stablecoin, designed to operate within the European Markets in Crypto-Assets (MiCA) framework. This initiative aims to provide a trustworthy European payment standard in the digital ecosystem, with the stablecoin expected to be launched in the second half of 2026.
Participating Banks and Objectives
The development of the stablecoin involves several prominent banks, including Dutch lenders ING, Italy’s Unicredit, Spain’s Caixabank, Denmark’s Danske Bank, Austria’s Raiffeisen Bank International, Belgium’s KBC, Sweden’s SEB, and Germany’s DekaBank, among others. The founding members have established a new company, headquartered in the Netherlands, to oversee the development and management of the stablecoin. This collaborative effort is intended to contribute to the European Union’s strategic autonomy and provide a local alternative to the stablecoin market, which is currently dominated by the United States.
The initiative is open to other banks, and the consortium has expressed its willingness to welcome additional participants to the project. By working together, these banks aim to create a stablecoin that meets the standards set by the MiCA regulation, ensuring a secure and reliable payment system for European users.
Key Features and Benefits
According to ING’s announcement, the euro stablecoin will offer “almost instant, inexpensive payments and settlements,” as well as 24/7 access to cross-border payments. The stablecoin is also expected to provide programmable payments and improvements for supply chain management and digital asset settlements, which can range from securities to cryptocurrencies. This will enable users to make fast and secure transactions, both domestically and internationally, without the need for traditional banking hours or costly intermediaries.
Floris Lugt, LED Digital Asset and Common Public Representative of the project, emphasized the importance of digital payments in shaping the future of European financial market infrastructures. He stressed that an industry-wide approach is necessary, with banks applying the same standards to ensure a cohesive and reliable system.
Regulatory Context and Digital Euro
The announcement of the joint stablecoin project comes shortly after Piero Cipollone, a member of the European Central Bank’s board, estimated that the digital euro could become a reality in 2029. Cipollone, who also serves as the deputy governor of the Bank of Italy, noted that the European Parliament is expected to define a general framework for the proposed digital currency by May 2026. The development of a digital euro has been underway since 2020, and some online commentators have described the new stablecoin initiative as a “digital euro aftercall notice.”
While the digital euro is still in its development phase, the stablecoin project has sparked speculation about its potential role as a “backdoor CBDC.” However, it is essential to note that a CBDC is issued directly by a central bank, whereas a stablecoin is a privately issued asset.
Global Context and Implications
The preference for stablecoins over CBDCs is not unprecedented. In early 2025, the Trump administration made a historic decision to ban CBDC development in the United States, opting instead to promote stablecoins pegged to the US dollar as a key component of its financial strategy. This move highlights the ongoing debate about the role of central banks in the development of digital currencies and the potential benefits and drawbacks of different approaches.
As the European stablecoin project moves forward, it will be essential to monitor its progress and evaluate its potential impact on the global financial landscape. For more information on this development, please visit https://cointelegraph.com/news/unicredit-ing-nine-banks-euro-stablecoin-mica?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
