The euro is about to get a digital makeover. A group of nine of Europe’s largest banks is working together to launch a common euro-pegged stablecoin, aiming to provide a regulated alternative to dollar-backed tokens that currently dominate the market.
The initiative brings together ING, UniCredit, CaixaBank, Danske Bank, SEB, Banca Sella, KBC, DekaBank, and Raiffeisen Bank International. Collectively, these institutions oversee hundreds of billions in assets and reach millions of customers across the continent. Their plan is to build a payments tool fully compliant with the EU’s landmark crypto framework, MiCA, which became law in 2024.
The project is still in its regulatory phase. The consortium has applied for an e-money license in the Netherlands and expects a green light before introducing the token in the second half of 2026. Once live, the stablecoin is expected to support everyday payments, cross-border transfers, and on-chain settlement, operating under strict oversight to ensure security and transparency.
Executives close to the project say the ambition is not just technological but also strategic: Europe wants a stronger foothold in the digital money race. For years, dollar-denominated stablecoins such as USDT and USDC have dominated global crypto activity, leaving the euro sidelined in its own region. The consortium believes its regulated approach can change that dynamic.
Banks involved are already considering value-added services to accompany the rollout, including digital wallets, custody options, and programmable payment features that could streamline supply chains and corporate transactions. If successful, the move could accelerate the integration of blockchain infrastructure into Europe’s traditional financial system.
The announcement also sets the stage for competition with existing euro stablecoins. Circle’s EURC is currently the most widely used, with a market capitalization of around $260 million, followed by STASIS EURO, SG Forge’s EUR CoinVertible, and Tether’s EURT. But compared to the scale of the nine-bank partnership, these projects remain relatively niche.
The euro stablecoin is therefore not just a financial product – it’s a political statement. By 2026, Europe could have its own homegrown alternative to U.S.-issued tokens, reinforcing its autonomy in digital finance while setting the benchmark for MiCA-compliant innovation.
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Source: https://coindoo.com/european-banking-giants-unite-to-launch-euro-stablecoin-in-2026/
