A new crypto venture is emerging in Europe, with nine major European banks joining forces to launch a euro-pegged stablecoin by 2026. This ambitious project aims to challenge the dominance of US dollar-linked stablecoins and bolster the euro’s role in digital payments.
The consortium behind this initiative includes prominent banks such as ING, UniCredit, Banca Sella, KBC, Danske Bank, DekaBank, SEB, CaixaBank, and Raiffeisen Bank International. Their joint effort seeks to establish a fully collateralized digital currency, with each token backed one-to-one by euros held in regulated accounts.
This euro stablecoin will offer several benefits, including near-instant, low-cost cross-border payments, enhanced supply chain management, and a robust, regulated digital payment standard. It will operate under the stringent guidelines of the EU’s Markets in Crypto-Assets (MiCA) regulation, ensuring legitimacy and setting a precedent for regulated digital currencies in the EU.
The launch of this bank-backed euro stablecoin has the potential to reshape the digital payment landscape in Europe and beyond. It may reduce reliance on foreign payment systems, reinforce the international role of the euro, and strengthen Europe’s financial sovereignty.
However, the European Central Bank (ECB) has expressed concerns about the risks privately issued stablecoins could pose to monetary policy transmission and financial stability. Despite these concerns, the consortium is moving forward with its plans, and the euro stablecoin is expected to launch in the second half of 2026.
