European banking giants join forces for a new Euro stablecoin
This is a big deal that will change the European digital money scene. Nine big European banks have said they will launch a new stablecoin that is linked to the euro. This ambitious plan is trying to create a new option that is made in Europe and is not linked to the US dollar. It will also follow all the rules of Europe’s MiCA laws.
Some of Europe’s most important banks are supporting this project. ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International. They want to create a digital currency that can be used to make instant, 24/7 payments and transactions, with much lower fees. As well as basic transactions, the credit institutions taking part want to offer their customers a range of other services, including special wallets for holding this new digital asset.
To get this project started, the banks that started it have already set up a new company in the Netherlands. This organisation will be very important in getting an e-money issuer license from the local central bank. When the necessary approvals are given, the group of companies will choose a CEO to lead the project. They are also open to having new people from the financial sector join. The exciting launch of this euro stablecoin is currently planned for the second half of 2026.
Flaminia Lucia Franca, a representative from Danske Bank, explained the reason for this new approach: “Digital assets have the potential to change the financial landscape — not only through new forms of money, but also thanks to the significant efficiencies and savings they bring for both the financial sector and customers.”
Challenging US stablecoin dominance
This European push comes at a time when US dollar-pegged stablecoins largely control the global market. Currently, the entire stablecoin sector boasts an estimated market capitalization of $295 billion. Tether’s USDT remains the undisputed leader, commanding a substantial 58.6% market share, with Circle’s USDC following as the second most prevalent, holding 29.9% of the segment.
While euro-based stablecoins are still catching up, their market value already exceeds $562 million, according to data from CoinGecko. Within this category, Circle’s EURC, launched on the Solana blockchain in December 2023, stands out as the largest asset by market capitalization.
The regulatory environment in Europe is rapidly evolving to accommodate these digital innovations. As of early 2025, ten issuers have successfully obtained a MiCA license, which permits them to issue stablecoins across the European Economic Area. This regulatory clarity is a key factor encouraging banks to venture into this space.
There has been more and more activity in this area recently. Last April, there were reports that ING Bank was going to launch its own regulated stablecoin in Europe. Two other companies supported by Tether, StablR and Oobit, have also introduced stablecoins that comply with the new European regulations. In June, SG-FORGE, the crypto asset division of the French financial group Societe Generale, made the news when it announced the USD Coin Vertible (USDCV). This latest joint project by nine European banks shows a coordinated effort to build a strong digital currency system for the region, making sure Europe stays at the front of the financial future.
