Introduction of Euro-Supported Stablecoin in H2 2026? Nine Major European Banks Collaborate
A coalition of nine major banks in Europe—comprising ING, UniCredit, Danske Bank, SEB, KBC, DekaBank, Banca Sella, and Raiffeisen Bank International—has opted to collaborate on a stablecoin backed by the euro. In accordance with the European Union’s (EU) Markets in Crypto-Assets Regulation (MiCA) framework, these banks plan to introduce the stablecoin in late 2026. Could this be a transformative development for crypto payments in Europe? Does this euro-backed stablecoin have the potential to lessen Europe’s dependence on US dollar-pegged stablecoins?
On 25 September 2025, ING issued a joint statement affirming that “the initiative will deliver a genuine European alternative to the US-led stablecoin trading market, bolstering Europe’s strategic independence in payment systems.”
The banks assert that the stablecoin will allow for nearly instantaneous, affordable payments and settlements. It will also facilitate 24/7 availability for effective cross-border transactions, programmable payments, and enhancements in supply chain management and digital asset settlements, covering everything from securities to cryptocurrencies.
BREAKING
NINE EUROPEAN BANKS ARE COLLABORATING TO INITIATE A MICA COMPLIANT EURO STABLECOIN, WITH AN AIM TO LAUNCH IN 2026.
TRADITIONAL FINANCE IS FOCUSING ON CRYPTO ASSET FOR THE EUROZONE.
— DustyBC Crypto (@TheDustyBC) September 25, 2025
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“Digital payments are essential for new euro-denominated payment solutions and financial trading market frameworks”
The participating banks emphasized their willingness to welcome additional institutions, indicating that more banks are likely to join this initial nine.
“This digital payment solution, leveraging blockchain advancements, aims to establish a recognized European payment standard in the digital domain,” stated the joint announcement.
Interestingly, the initiative is being led by a newly established firm based in the Netherlands. Its goal is to secure licensing and regulatory oversight from the Dutch Central Bank, identifying itself as an “e-money institution”.
Floris Lugt, the Digital Assets lead at ING and a public representative for the project remarked, “Digital payments are fundamental for new euro-based payment systems and crypto market infrastructure. They provide remarkable efficiency and transparency, courtesy of the programmability of blockchain technology and the ability for instant cross-currency settlements around the clock.”
“We believe this advancement necessitates a collective industry approach, necessitating that all banks adhere to similar standards,” he noted.
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New European Rules Heighten Interest in Euro-backed Stablecoins
A 2024 report from Kaiko Research indicated that despite Europe historically trailing behind the US and APAC in terms of crypto trading, Euro-backed stablecoins have seen a consistent rise in volume since the year’s start. This evidently points to an increasing market demand for stablecoins in European markets.
Specifically, Circle’s USDC stablecoin is anticipated to capture a significant portion of the trading market from its larger competitor, Tether’s USDT, as identified by Kaiko. Analyst Anastasia Melachrinos from Kaiko Research emphasized that USDC stands to gain the most from the new European regulations.
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Key Insights
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The euro-backed stablecoin is poised to lessen Europe’s dependence on US dollar-pegged stablecoins, which currently hold a dominant position in the global crypto market.
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The euro stablecoin is designed to facilitate rapid, low-cost international payments and settlements, available around the clock.
The article Launch Of Euro-Backed Stablecoin In H2 2026? Nine European Banking Giants Join Forces first appeared on 99Bitcoins.
