Nine major European banks have joined forces to launch a euro-denominated stablecoin that will comply with Europe’s Market in Crypto-Assets (MiCA) framework, slated for release in 2026. This consortium includes leading banks from the Netherlands, Italy, Spain, Denmark, Sweden, Austria, Belgium, and Germany.
The initiative is aimed at contributing to the bloc’s strategic autonomy in payments by offering a European alternative to the stablecoin market currently dominated by U.S.-dollar-pegged tokens, such as USDT, USDC, RLUSD, USD1, and USDe.
Major European Banks Join Forces to Develop and Issue EU-Regulated Euro Stablecoin, Slated for 2026
According to a joint statement published on Thursday, the nine banks – ING, UnicreditSela Banking, CaixaBank, Seb, Raiffeisen Bank InternationalKBC, and DekaBank – have formed a new company headquartered in the Netherlands, which will be licensed and supervised by the Dutch Central Bank as an e-money institution, to oversee the development and management of the stablecoin.
The proposed euro stablecoin is expected to provide “near-instant, low-cost payments and settlements”. It is also set to enable 24/7 access to “efficient” cross-border paymentsprogrammable payments, and improvements in supply chain management and digital asset settlements, which can range from securities to cryptocurrencies. The MiCAR-compliant EUR coin is expected to be issued in the second half of 2026.
The banking consortium also noted that the stablecoin project is open for other regional banks to join by providing value-added services, such as wallet and custody programs. The stablecoin aims to become a trusted payment standard in the European digital finance ecosystem, as demand for the digital asset grew after the MiCA regulation became law in December 2024.
Floris Lugt, ING’s digital asset lead and a public representative for the project, said that digital payments are key for new euro-denominated payments and financial markets infrastructure. The group believes the initiative requires an “industry-wide approach” as domestic banks could be mandated to adopt the “same standards”.
ECB Executive Says Euro CBDC Could be Delayed Until 2029
The joint announcement came shortly after the European Central Bank said that its “digital euro” could be delayed until 2029. Peiro Cipollone, an executive board member at the ECB and deputy governor of the Bank of Italy, noted that the European Parliament is expected to outline a framework for the proposed central bank-issued digital currency (CBDC) by May 2026.
According to Cipollone, the biggest obstacle to a euro CBDC is the parliament, as lawmakers must pass legislation for the central bank to move forward with the project. He said that member-states should reach an agreement by the end of the year for the ECB to make any progress in the development of the digital euro.
Last week, EU finance ministers agreed on a pathway to impose limits on how many units of the digital currency an individual can holdfollowing the Economic and Financial Affairs Council meeting in Copenhagen, Denmark.
Meanwhile, the ECB is set to make an announcement in October on whether to move to the next phase of the digital euro, after which lawmakers will have six weeks to put forward amendments and another five months for final discussions.
The digital euro project was first introduced by the ECB in late 2020 and is one of Europe’s most ambitious and longest-discussed financial initiatives. In June 2023, the European Commission published a legal proposal for the CBDC; however, this progress was marred by limited progress within the parliament. The ECB completed its investigation into the feasibility of the digital euro in November 2023 and is currently in the preparation phase, which is expected to be completed next month.
Trump Admin’s Support for Stablecoins Forces European Regulators to Act
Given the delay of Europe’s potential CBDC, some within the crypto community described the upcoming euro stablecoin as a stand-in for the digital euro, while others speculate that it could serve as a “backdoor CBDC”.
The bloc’s newfound preference for stablecoins over CBDC is not random. In early 2025, U.S. President Donald Trump signed an executive order banning the development and issuance of a dollar-backed CBDC, while simultaneously committing to promoting USD-denominated stablecoins, declaring the digital assets as a key cog of his administration’s financial strategy. In July, Trump also signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS)which became the first major federal legislation in the country to create a comprehensive regulatory framework for payment stablecoins.
The European stablecoin consortium is expected to appoint a CEO in the coming months, subject to regulatory approval by the Dutch Central Bank.
GIPHY App Key not set. Please check settings