Citi Joins Forces with EU Lenders to Launch MiCA-Compliant Euro Stablecoin in 2025

• Why Is Citigroup Partnering with European Banks for a Euro Stablecoin?
• Who Are the Key Players Behind This Stablecoin Initiative?
• How Does This Challenge the US Stablecoin Dominance?
• What’s the Current State of Euro Stablecoins?
• How Is EURC Performing in DeFi?
• What’s Next for Stablecoin Regulation?
• FAQs

In a bold MOVE to challenge the US-dominated stablecoin market, Citigroup has teamed up with nine major European banks to launch a regulated, MiCA-compliant euro stablecoin by late 2026. This initiative aims to leverage blockchain technology for mainstream adoption while capitalizing on the euro's recent strength. Meanwhile, EURC—Circle’s euro-backed stablecoin—has seen organic growth, signaling rising demand for euro-denominated digital assets. Here’s a deep dive into the project, its players, and what it means for the future of finance.

Why Is Citigroup Partnering with European Banks for a Euro Stablecoin?

Citigroup isn’t just dipping its toes into crypto—it’s diving headfirst. The bank is joining forces with nine EU lenders, including ING Group, UniCredit, and Raiffeisen Bank, to create a regulated euro stablecoin under the EU’s Markets in Crypto-Assets (MiCA) framework. Why? Because the stablecoin market is overwhelmingly dollar-dominated (think USDT, USDC), and Europe wants a piece of the action. A Citi spokesperson told Bloomberg this move aligns with their broader blockchain expansion strategy. Plus, with the euro gaining ground against the dollar, the timing couldn’t be better.

Who Are the Key Players Behind This Stablecoin Initiative?

The consortium reads like a who’s who of European finance:

• ING Group (Netherlands)
• UniCredit (Italy)
• Raiffeisen Bank (Austria)
• Danske Bank (Denmark)
• KBC Group (Belgium)
• Banca Sella (Italy)
• SEB AB (Sweden)
• CaixaBank (Spain)
• DeKa Bank (Germany)

Citigroup is the sole non-European bank in the group, which is managed by a newly formed Dutch entity. The goal? To launch the stablecoin by the second half of 2026. Talk about a long game.

How Does This Challenge the US Stablecoin Dominance?

Let’s face it: stablecoins are basically a dollar monopoly. Tether (USDT) and Circle’s USDC alone account for over $300 billion in market cap. Euro stablecoins? A measly $561 million, per CoinMarketCap data. But with MiCA providing regulatory clarity and the euro’s recent resilience, this consortium sees an opening. The new stablecoin will be fully compliant with MiCA, ensuring transparency and trust—something that’s been hit-or-miss in the dollar stablecoin space.

What’s the Current State of Euro Stablecoins?

Circle’s EURC is the big fish in a small pond. Despite its growth (260 million tokens in circulation), euro stablecoins are still niche. Most demand comes from crypto trading and DeFi integrations, like lending pools on ethereum and Stellar. But here’s the kicker: stablecoins could handle up to $50 trillion in annual payments by 2030, according to industry estimates. If Europe plays its cards right, this new stablecoin could grab a significant slice of that pie.

How Is EURC Performing in DeFi?

EURC isn’t sitting idle. It’s been integrated into Stellar’s network, bridging traditional finance and blockchain. Over the past year, its supply grew organically, and it’s now one of the fastest-growing euro stablecoins. Why? Because traders and institutions are using it as a hedge against dollar weakness. As one BTCC analyst put it, “EURC’s growth reflects Europe’s rising clout in crypto adoption.”

What’s Next for Stablecoin Regulation?

MiCA isn’t just a rulebook—it’s a game-changer. By setting clear guidelines for stablecoin issuance, the EU is creating a safer environment for investors. The US is playing catch-up, but with Congress dragging its feet, Europe could steal the spotlight. And let’s not forget: regulated stablecoins are boosting demand for government debt, like US Treasuries, which back many of these tokens. It’s a win-win for crypto and traditional finance.

FAQs

Why is Citigroup launching a euro stablecoin?

To diversify the stablecoin market beyond dollar dominance and align with EU crypto regulations (MiCA).

Which banks are involved in the project?

Nine EU lenders, including ING, UniCredit, and Raiffeisen Bank, plus Citigroup as the sole US participant.

How does EURC compare to other euro stablecoins?

EURC leads the pack with $280 million in market cap (half the total euro stablecoin supply) and strong DeFi integration.

When will the new stablecoin launch?

Targeted for the second half of 2026, pending regulatory approvals.