Major European Banking Alliance Aims to Launch Euro Stablecoin by 2026
Nine of Europe's largest financial institutions are joining forces to create a digital euro equivalent—a move that could reshape continental finance.
The Banking Consortium's Digital Play
This coalition of established banks represents a strategic shift toward blockchain integration. Rather than fighting cryptocurrency adoption, they're building their own regulated alternative to private stablecoins.
Timeline and Implications
With a 2026 launch target, the project gives traditional finance nearly a year to develop infrastructure. The euro-backed digital asset would provide European businesses with faster settlement times and reduced cross-border transaction costs.
Regulatory Advantage
Unlike decentralized stablecoins, this bank-backed version will operate within existing financial frameworks. That means instant regulatory approval—and potentially crushing competition from smaller crypto projects.
Because nothing says innovation like nine banks forming a committee to build what crypto pioneers created years ago.
Nine European banks, including UniCredit, are working together on a MiCAR-compliant euro stablecoin. The goal: instant, low-cost payments available anytime, strengthening Europe’s digital ecosystem and paving the way for new uses of digital assets.
— UniCredit (@UniCreditEurope) September 25, 2025
The consortium includes ING (Netherlands), UniCredit and Banca Sella (Italy), KBC (Belgium), Danske Bank (Denmark), DekaBank (Germany), SEB (Sweden), CaixaBank (Spain), and Raiffeisen Bank International (Austria). The newly formed company will be headquartered in the Netherlands and will oversee the development and management of the euro stablecoin.
According to the joint statement, the project is expected to roll out in late 2026 and is designed to become a trusted payment standard within the European digital economy. Other banks will be invited to join ahead of the official launch.
The move directly challenges the global dominance of U.S.-based stablecoins. Tether (USDT) and USD Coin (USDC) currently control nearly 88.5% of the $295 billion global stablecoin market, leaving euro-backed tokens with only a fraction of the share.
Currently, the euro stablecoin market remains small, valued at just $562 million, led by Circle’s EURC launched on solana in 2023. By contrast, USD-pegged stablecoins have grown into a trillion-dollar settlement tool across DeFi, payments, and remittances.
The new entity will operate as an electronic money institution and seek licensing and supervision from the Dutch central bank. Once approved, the stablecoin will support 24/7 international payments, programmable money, and supply chain management, making it a versatile tool for businesses and consumers.
European banks hope this initiative will strengthen EU sovereignty in digital finance and prevent overreliance on U.S.-backed assets. Flaminia Lucia Franca of Danske Bank highlighted the benefits, stating:
“Digital assets have the potential to deliver major efficiencies and cost savings for both the financial sector and its customers.”
The euro stablecoin project marks one of Europe’s most ambitious attempts to catch up with U.S. and Asian digital asset initiatives and could reshape the continent’s role in the global crypto economy.
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