Major European Banks Unite to Launch Euro-Pegged Stablecoin Under MiCA

European Banks Join Forces for Euro Stablecoin Launch

In a significant move towards bolstering digital financial innovation in Europe, a consortium of major European banks has united to launch a euro-pegged stablecoin. This ambitious project aims to fully comply with Europe’s Markets in Crypto-Assets (MiCA) framework, paving the way for a new generation of secure and efficient digital payments.

According to a joint statement published by Dutch lender ING, ING and Italy’s UniCredit, along with seven other European banks, are participating in the development of this new euro-denominated stablecoin. The initiative aims to provide a local alternative to US-dominated stablecoins, thereby contributing to Europe's strategic autonomy in payments.

MiCA Compliance: A Cornerstone of the Project

The stablecoin is designed to be fully compliant with the stringent European MiCA regulations. It is planned to be issued in the second half of 2026, with a mission to become a trusted European payment standard in the digital ecosystem. This compliance is a critical step towards building trust and credibility in the cryptocurrency space, essential for widespread adoption.

24/7 Access to Cross-Border Payments

The projected euro stablecoin is expected to provide “near-instant, low-cost payments and settlements,” enabling 24/7 access to cross-border payments. Furthermore, the stablecoin is set to offer programmable payments and improvements to supply chain management and digital asset settlements, which can range from securities to cryptocurrencies.

Supporting Digital Financial Innovation in Europe

This initiative aligns with Europe’s plans to provide a local alternative to the US-dominated stablecoin market, contributing to its strategic autonomy in payments. By providing a more efficient and cost-effective digital payment infrastructure, this stablecoin could support digital financial innovation across the continent.

Floris Lugt, ING’s digital asset lead and joint public representative for the project, stated: “Digital payments are key for new euro-denominated payments and financial market infrastructure. We believe this development requires an industry-wide approach, and it's imperative that banks adopt the same standards.”

Potential Market Impact

The launch of this euro-pegged stablecoin could be a game-changer for the European cryptocurrency market. By providing a stable and regulated alternative to traditional cryptocurrencies, this stablecoin could attract a wide range of users, from individuals to large corporations. Additionally, the success of this initiative could encourage more banks and financial institutions to enter the digital asset space, further accelerating the growth of this market.