Major European Banks Plot Joint Euro Stablecoin Launch - Traditional Finance Finally Wakes Up

Europe's banking giants are mounting a counteroffensive against decentralized finance—by building their own digital currency fortress.

The Eurozone Gambit

Instead of fighting crypto, they're joining it—with centralized strings attached. Major financial institutions across the continent are pooling resources to create a regulated euro-pegged stablecoin, signaling the most significant institutional crypto move since Bitcoin's inception.

These banks aren't just dipping toes anymore—they're diving headfirst into digital assets. The coordinated effort reveals how threatened traditional finance feels by DeFi's growth, yet how determined they remain to control the rails.

Wall Street's worst nightmare? European banks might actually make blockchain boring—and profitable. Because nothing says innovation like putting a blockchain wrapper on the same old centralized control. The move could either legitimize stablecoins for the masses or prove that banks still don't get why people wanted crypto in the first place.

European banks form new stablecoin company

On Thursday, the nine banks, which also include Banca Sella, DekaBank, SEB, and Raiffeisen Bank International, revealed they are joining forces to create a new company that will launch a euro-denominated stablecoin in 2026.

According to a Reuters report, the euro-pegged stablecoin will be Markets in Crypto-Assets Regulation–compliant and offer a trusted digital payment instrument built on blockchain technology. The EU’s MiCA rules came into effect in December 2024 and include a robust regulatory framework for stablecoins.

The new company set to issue the stablecoin will be based in the Netherlands and expects to acquire an e-money institution license from the Dutch Central Bank.

Countering U.S. dominance

With U.S. banks ready for a dollar-backed stablecoin, a potential path to dominance emerged with the signing into law of the GENIUS Act. However, some of the top banks in Europe want to counter this would-be enhancement of U.S. hegemony with a regulated euro-denominated crypto token.

“Digital payments are key for new euro-denominated payments and financial market infrastructure. They offer significant efficiency and transparency, thanks to blockchain technology’s programmability features and 24/7 instant cross-currency settlement. We believe this development requires an industry-wide approach, and it’s imperative that banks adopt the same standards,” Floris Lugt, digital assets lead at ING, said in a statement.

Lugt is a joint public representative of the euro stablecoin initiative.