EU Banks Forge Historic Alliance to Launch MiCA-Compliant Euro Stablecoin
European banking giants unite to challenge crypto-native stablecoins with regulatory-first digital euro.
BREAKING THE MOLD
Traditional financial institutions finally embrace blockchain technology—with regulators holding both hands. A consortium of major EU banks announces the first fully MiCA-compliant euro-pegged stablecoin, marking the continent's most significant move toward digital currency integration.
REGULATORY ARBITRAGE PLAY
The initiative leverages Europe's Markets in Crypto-Assets framework to create what participants call 'the antithesis of wildcat stablecoins.' Unlike offshore alternatives, this euro digital token builds compliance directly into its architecture—monitoring transactions in real-time while maintaining full banking sector oversight.
INSTITUTIONAL ADOPTION PATH
Banks position the stablecoin as bridge infrastructure between traditional finance and decentralized ecosystems. Early integration targets include corporate treasury operations, cross-border settlements, and DeFi protocols seeking regulatory clarity. The move signals institutional willingness to engage with crypto—provided rulebooks come first.
Market reaction mixes optimism about legitimacy with skepticism about innovation pace. As one trader noted: 'Nothing moves slower than banks trying to move fast—except maybe EU regulatory approvals.' The project demonstrates traditional finance's determination to reclaim territory from crypto natives, even if it means playing by rules that would make Satoshi Nakamoto shudder.
ING, Banca Sella, KBC and others plan to launch MiCA-compliant Euro stablecoin
A group of major European banks, including ING, UniCredit, Danske Bank, CaixaBank and SEB, are collaborating on a Euro-backed stablecoin project, according to a statement on Thursday. The project seeks to provide a European alternative to US Dollar-backed stablecoins.
The consortium stated that it has established a Netherlands-based entity to oversee the initiative and is aiming for a Dutch Central Bank license for the new company.
The group also expressed plans to appoint a CEO for the newly formed company in the NEAR future, pending regulatory approval. They also expressed an interest in expanding the initiative by accepting more banking partners.
The new stablecoin will fall under the EU's Markets in Crypto-Assets (MiCA) regulation and is slated for a potential launch in the second half of 2026.
"We believe this development requires an industry-wide approach, and it's imperative that banks adopt the same standards," said Floris Lugt, Digital Assets lead at ING and joint public representative of the initiative.
The EU has been strengthening its grip on the crypto sector over the past few years, following the bloc's issuance of the MiCA regulation in 2023. Since then, cryptocurrency activities have undergone stricter procedures, including those related to stablecoin transactions.
Following the enactment of the GENIUS Act in the US in July, the EU reportedly began accelerating its plans for a digital Euro, with expectations of a launch on the ethereum or Solana blockchain.
USDC holds a significant portion of the stablecoin market in the region after Circle obtained the first US Dollar-pegged digital currency license under MiCA law last year. The development was accompanied by the delisting of Tether's USDT across several European exchanges due to non-compliance with EU regulations, resulting in a decline in market demand from the region.
Although there are already Euro-backed stablecoins in the region, the market is still widely dominated by US Dollar-pegged crypto assets. The introduction of a fully compliant stablecoin through a collaboration of European banks aims to level the playing field, offering a more native option for users.
