A consortium of nine major European banks has announced the formation of a groundbreaking initiative to launch a euro-denominated stablecoin compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulation, marking a significant challenge to the US-dominated stablecoin market.
The Banking Consortium
The participating institutions include ING, UniCredit, Banca Sella, KBC, Danske Bank, DekaBank, SEB, CaixaBank, and Raiffeisen Bank International. These banks, spanning eight EU member states, have established a new company headquartered in the Netherlands to oversee the development and management of the stablecoin.
Strategic Objectives
The initiative aims to provide a genuine European alternative to US-dominated stablecoin markets, contributing to Europe’s strategic autonomy in digital payments. The stablecoin will enable near-instant, low-cost payments and settlements with 24/7 access to efficient cross-border transactions, programmable payments, and improvements in supply chain management.
According to Floris Lugt, Digital Assets Lead at ING and joint public representative of the initiative, “Digital payments are key for new euro-denominated payments and financial market infrastructure. They offer significant efficiency and transparency, thanks to blockchain technology’s programmability features and 24/7 instant cross-currency settlement”.
Regulatory Framework
The stablecoin will operate under the EU’s Markets in Crypto-Assets Regulation (MiCA), which has been in force since June 30, 2024. Under MiCA, stablecoins are classified as either e-money tokens (EMTs) or asset-referenced tokens (ARTs), with strict requirements including EU licensing, fully backed reserves, and detailed whitepapers.
The consortium’s new entity will seek licensing and supervision from the Dutch Central Bank as an e-money institution. MiCA regulations cap payment transactions at €200 million per day and require issuers to maintain rigorous compliance standards.
Launch Timeline and Market Context
The MiCA-compliant euro stablecoin is expected to launch in the second half of 2026. This timeline positions it as an interim solution, launching at least three years before the European Central Bank’s digital euro, which won’t debut before mid-2029.
Currently, US stablecoins dominate the international market, comprising approximately 99% of the total $292 billion market capitalization, while euro-pegged stablecoins represent only around €500 million ($587 million). The European initiative seeks to capture a larger share of this rapidly growing market.
Connection to Tether’s Market Leadership
This European banking initiative comes as stablecoin market leader Tether pursues a massive capital raise that could value the company at $500 billion. According to recent reports, Tether is seeking to raise between $15-20 billion for approximately 3% of the company, with Cantor Fitzgerald acting as lead adviser.
Read our $500B Tether report here.
Tether‘s USDT commands a market capitalization of $172 billion, making it the largest stablecoin globally. The company reported $4.9 billion in net profit in the second quarter of 2025 alone, primarily through interest income on reserves backing its tokens. This financial strength demonstrates the lucrative potential of the stablecoin market that European banks are now entering.
Future Implications
The consortium remains open to additional banks joining the initiative, and individual member banks will provide value-added services such as stablecoin wallets and custody solutions. A CEO for the new company is expected to be appointed pending regulatory approval.
This initiative represents more than technological innovation—it embodies Europe’s strategic effort to establish financial sovereignty in the digital asset space while competing with established US players in the rapidly expanding stablecoin ecosystem.
