Europe is taking a strategic leap into the digital currency space with the planned launch of a euro denominated stablecoin, aiming to reduce reliance on U.S. backed digital assets and establish a sovereign standard for digital payments across the continent.
A consortium of nine major banks including ING (XNYS-ING), UniCredit (XMIL-UCG), Banca Sella, and CaixaBank (BMEX-CABK) has joined forces to develop the blockchain based currency. A tenth institution is reportedly in talks to participate, with the consortium remaining open to additional partners.
The initiative, headquartered in Amsterdam, targets the second half of 2026 for its official rollout. The stablecoin will be regulated under the EU’s Markets in Crypto Assets (MiCA) framework and supervised by the Dutch Central Bank, ensuring compliance with European financial standards.
Designed to facilitate instant, low cost, 24/7 transactions, the euro stablecoin aspires to become a pan European payment standard, offering an alternative to the dollar dominated stablecoin market currently led by Tether and Circle. While the global stablecoin market exceeds $290 billion, euro denominated stablecoins account for just $620 million, underscoring the potential for growth.
Promoters of the project view it as a pivotal move in the evolution of digital payments and financial infrastructure in Europe, aligning with broader efforts to enhance monetary sovereignty and technological competitiveness.