Nine European banks, including ING, UniCredit, CaixaBank and Danske Bank, said on Thursday that they have formed a consortium to launch a euro-denominated stablecoin.
The initiative, structured as a new company in Amsterdam, aims to issue its first tokens in the second half of 2026 under supervision from the Dutch Central Bank and in compliance with the European Union’s Markets in Crypto Assets (MiCA) regulation.
The move comes as US financial institutions, buoyed by recent federal legislation on stablecoins, prepare to roll out their own dollar-backed tokens, intensifying concerns over US dominance in global digital payments.
Euro-denominated stablecoins remain marginal, with less than €1 billion in circulation compared to roughly $300 billion in dollar-linked tokens, according to the Bank of Italy. The newly announced plan echoes earlier attempts, including Société Générale’s 2023 euro stablecoin launch, which saw limited uptake.
European Central Bank President Christine Lagarde has repeatedly warned that privately issued stablecoins could undermine monetary policy and has instead pushed for a digital euro. Commercial banks, however, have resisted an ECB-issued version, fearing deposit flight into central bank-backed wallets.
The nine-bank consortium says its token will enable near-instant settlement, lower-cost payments and programmable financial services across borders. A CEO is expected to be appointed soon, and additional banks may join the effort.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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Source: https://blockworks.co/news/european-banks-form-consortium-to-launch-euro-stablecoin
