- Nine major European banks are uniting to launch a euro-backed stablecoin under the EU’s MiCA regulatory framework by 2026.
- The initiative seeks to reduce Europe’s reliance on dollar-based digital currencies and capture a share of the growing payments market.
Nine financial institutions from Europe are jointly developing a new digital currency fully backed by the euro. This group aims to create a payment system rooted in Europe and offer a digital currency option beyond those tied to the U.S. dollar. The project will adhere to the European Union’s MiCAR regulations.
ING, UniCredit, Danske Bank, and six other banks form this coalition. They have incorporated a new entity in the Netherlands to oversee the initiative. The consortium anticipates naming a chief executive officer after receiving necessary regulatory clearances. A launch for the stablecoin is scheduled for the latter part of 2026.
The digital coin is designed to process payments and settlements more quickly and at a lower cost than conventional banking. It will operate continuously, every day of the week. Its functionality will include programmable transactions and the ability to settle diverse assets like stocks or bonds.
A primary motivation involves reinforcing Europe’s independence in financial technology by offering a homegrown digital currency. The cross-border payments sector within Europe represents a large and expanding market. Presently, stablecoins pegged to the euro hold a very small fraction of the overall market.
