Nine Major European Banks Unite to Launch Euro Stablecoin in 2026

The banking giants behind this project include ING, UniCredit, KBC, Danske Bank, DekaBank, SEB, CaixaBank, Banca Sella, and Raiffeisen Bank International. Together, these institutions serve millions of customers across Europe and manage hundreds of billions in assets.

The new euro stablecoin aims to challenge the current market where US dollar-backed digital currencies rule. Today, most stablecoins use the US dollar as their backing, giving America significant control over digital payments worldwide. Euro-backed stablecoins currently hold less than 1% of the market, despite Europe’s massive economy.

“The initiative will provide a real European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments,” the banks stated in their joint announcement. This move reflects Europe’s growing desire to reduce dependence on US financial systems.

Europe’s cross-border payments market exceeds $250 billion in 2025 and is expected to reach $320 billion by 2030. The new stablecoin could capture a significant portion of this growing market by offering faster, cheaper alternatives to traditional payment methods.

The euro stablecoin will operate on blockchain technology, allowing users to send money instantly at any time of day. Unlike traditional bank transfers that can take days and only work during business hours, this digital currency promises near-instant settlements 24/7.

The system will support programmable payments, meaning businesses can automate complex payment processes. Companies could set up automatic payments that trigger when certain conditions are met, streamlining supply chain management and reducing administrative costs.

Each participating bank will offer its own wallet and custody services for the stablecoin. This approach gives customers multiple options while ensuring the digital currency remains tied to traditional banking infrastructure that people already trust.

The project operates under Europe’s Markets in Crypto-Assets Regulation (MiCA), which set new rules for digital currencies across the European Union. These regulations require stablecoin issuers to obtain proper licenses, maintain full reserves, and provide transparent reporting.

Source: @UniCreditEurope

The banks have formed a new company in the Netherlands to manage the project. This entity will seek an e-money license from the Dutch Central Bank, allowing it to operate across all EU member countries through a process called “passporting.”

MiCA’s strict requirements have already reshaped Europe’s digital currency landscape. Major exchanges removed non-compliant stablecoins, including Tether’s USDT, creating demand for regulated alternatives. The regulation requires issuers to hold at least 60% of their reserves in European banks and undergo regular audits.

The announcement comes as Europe’s digital currency regulations reach full implementation. Earlier this year, Deutsche Bank-backed EURAU became Germany’s first regulated euro stablecoin, showing growing institutional interest in compliant digital currencies.

The timing also coincides with the European Central Bank’s work on a digital euro, which could become reality by 2029. However, bank-issued stablecoins like this consortium’s project could reach market much sooner, potentially capturing significant market share before official government alternatives arrive.

“Digital payments are key for new euro-denominated payments and financial market infrastructure,” said Floris Lugt, Digital Assets lead at ING. “They offer significant efficiency and transparency, thanks to blockchain technology’s programmability features and 24/7 instant cross-currency settlement.”

The consortium remains open to additional banks joining the initiative. This expansionist approach suggests the project could grow beyond its current nine founding members, potentially creating the largest bank-backed stablecoin network in Europe.

Individual banks will compete on services while collaborating on the underlying infrastructure. This model allows each institution to maintain customer relationships while benefiting from shared technology and regulatory compliance costs.

The project addresses growing demand from businesses and consumers for faster, cheaper international payments. Traditional wire transfers often cost $15-50 and take several days, while the new stablecoin promises near-zero fees and instant settlement.

This consortium represents the largest coordinated effort by European banks to enter the regulated stablecoin market. By launching in 2026, these nine institutions could fundamentally reshape how Europeans send money, pay bills, and conduct business across borders. The success or failure of this initiative will likely influence how traditional banks worldwide approach digital currencies in the coming decade.