European Banks Consortium to Launch Euro Stablecoin in 2026

Nine major European banks, including ING, UniCredit, and Danske Bank, have formed a consortium to introduce a euro-denominated stablecoin by the second half of 2026. The initiative, headquartered in Amsterdam, will operate under Dutch Central Bank supervision and comply with the EU's MiCA regulations.

The MOVE comes as U.S. financial institutions advance their own dollar-backed stablecoins, raising concerns about American dominance in digital payments. Currently, euro-linked stablecoins account for less than €1 billion in circulation—a fraction of the $300 billion in dollar-pegged tokens.

ECB President Christine Lagarde has cautioned against private stablecoins' potential impact on monetary policy, advocating instead for a digital euro. Commercial banks, however, resist this centralized approach, fearing deposit migration to ECB-backed wallets.

The consortium promises near-instant settlements, reduced transaction costs, and programmable cross-border financial services. This follows Société Générale's underwhelming 2023 euro stablecoin attempt, highlighting the challenges of gaining traction against established dollar alternatives.