Nine Major European Banks Unite to Launch MiCA-Compliant Euro Stablecoin by 2026

Nine major European banks are launching a MiCA-compliant euro stablecoin, aiming for faster, low-cost payments by 2026.

Nine leading European banks have joined forces to launch a euro-denominated stablecoin. They are aiming to challenge the dominance of US-based stablecoins like USDT and USDC. 

This stablecoin, fully compliant with the EU’s MiCA, will offer faster, lower-cost payments and cross-border settlements. The stablecoin is scheduled for release in the second half of 2026.

Consortium of Banks Behind the Euro Stablecoin Initiative

The banks involved in this initiative include ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International.

To comply with MiCA regulations, the consortium has formed a new company in the Netherlands. This company will seek an electronic money issuer license from the Dutch Central Bank to ensure regulatory compliance.

The new company will enhance governance and transparency while driving the stablecoin project forward. The initiative is open to additional banking partners, and once regulatory approval is obtained, the consortium plans to appoint a CEO.

This collaboration showcases Europe’s determination to create an alternative to the US-dominated stablecoin market and contribute to the region’s digital payments landscape.

Features and Benefits of the Euro Stablecoin

The euro stablecoin will leverage blockchain technology to offer instant and low-cost payments and settlements. It aims to provide 24/7 access to efficient cross-border payments, programmable transactions, and improvements in supply chain management and digital asset settlements.

Additionally, financial institutions participating in the project will offer services such as wallets for users to store and transact the euro stablecoin.

By providing a fully regulated, MiCA-compliant stablecoin, the initiative aims to strengthen Europe’s strategic autonomy in digital payments and boost its global position in the crypto ecosystem.

Flaminia Lucia Franca, a representative of Danske Bank, highlighted the potential of digital assets to unlock efficiencies within the financial sector.

European Stablecoin Market and MiCA Regulations

Currently, the stablecoin market has a valuation of $295 billion, with USDT and USDC dominating the space. The new euro stablecoin will provide Europe with an alternative, reducing reliance on US-based stablecoins.

MiCA regulations have already paved the way for several European issuers to enter the market. Ten issuers holding MiCA licenses as of early 2025.

This initiative adds to the growing trend of European financial institutions exploring regulated stablecoins. European regulators are working to ensure that the EU remains competitive in the global digital finance market. This euro stablecoin marks a step forward in achieving that goal.

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