Nine European Banks Launch Consortium for MiCA-Compliant Euro Stablecoin
Nine leading European banks, including ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International, have joined forces to launch a euro-denominated stablecoin. This initiative aims to provide a MiCA-compliant alternative to US dollar-backed stablecoins, fostering faster, lower-cost payments and cross-border settlements within Europe by 2026.
Consortium and Regulatory Compliance
To ensure compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation, the consortium has established a new company in the Netherlands. This entity will seek an electronic money issuer license from the Dutch Central Bank, ensuring adherence to regulatory standards and enhancing governance and transparency. The initiative is open to additional banking partners, and a CEO will be appointed upon regulatory approval.
The launch of this stablecoin marks a significant step towards Europe's strategic autonomy in digital payments, aiming to reduce reliance on US-dominated stablecoins and bolster the region's digital payments landscape. Flaminia Lucia Franca, a representative of Danske Bank, emphasized the potential of digital assets to improve efficiencies within the financial sector.
Features and Benefits of the Euro Stablecoin
The euro stablecoin will leverage blockchain technology to facilitate instant and low-cost payments and settlements. It aims to offer 24/7 access to efficient cross-border transactions, enable programmable payments, and improve supply chain management and digital asset settlements. Participating financial institutions will also provide services such as wallets for users to store and transact the euro stablecoin.
By offering a fully regulated, MiCA-compliant stablecoin, the initiative seeks to strengthen Europe's global position in the crypto ecosystem and promote strategic autonomy in digital payments. This initiative is a direct response to the current stablecoin market, which is dominated by USDT and USDC, with a valuation of approximately $295 billion.
Impact on the European Stablecoin Market and MiCA Regulations
MiCA regulations have already paved the way for several European issuers to enter the stablecoin market. As of early 2025, ten issuers held MiCA licenses. This initiative adds to the growing trend of European financial institutions exploring regulated stablecoins, with regulators working to ensure that the EU remains competitive in the global digital finance market.
The consortium’s efforts underscore Europe's determination to establish a secure and regulated on-chain payments option for European businesses and consumers. This aims to reduce dependency on foreign stablecoins and promote a thriving local digital payments ecosystem. Crypto journalist, Coli, pointed out the new project is designed to give European businesses a regulated on-chain payment option.
| Feature | Description |
|---|---|
| Compliance | Fully compliant with EU's Markets in Crypto-Assets (MiCA) regulation |
| Technology | Leverages blockchain technology |
| Benefits | Instant, low-cost payments, 24/7 access, programmable payments, improved supply chain management |
| Target Launch | Second half of 2026 |
| Participating Banks | ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, Raiffeisen Bank International |
