What happened?
Nine major European banks, including ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International have come together to launch a euro-backed stablecoin. This stablecoin is expected to roll out in the second half of 2026 and will be regulated under the trading block’s Markets in Crypto Assets (MiCA) rule. The banks have also established a new company in the Netherlands to house this innovative project.
Who does this affect?
This development impacts both the banks involved and the larger European market. As the digital asset targets providing an alternative to the US-dominated stablecoin markets, it may also affect existing stablecoin issuers, particularly those based in the United States. Users stand to gain from near-instant transactions at lower costs, with access to cross-border payments, digital asset settlements and more.
Why does this matter?
The introduction of a euro-backed stablecoin serves as a significant step towards shifting the dominance away from US dollar-based stablecoins which currently account for 99% of the total stablecoin market cap. It also illustrates Europe’s strategic move towards autonomy in payments. Considering the European Central Bank’s recent call for stricter rules on non-EU stablecoin issuers, this development helps bolster Europe’s standing in the global cryptocurrency market.