In a development attracting global financial attention, ING – the largest bank in the Netherlands – is reportedly secretly developing its own branded stablecoin project to capitalize on the wave of cryptocurrency legalization in Europe through the MiCA legal framework.
If completed, ING will officially join the stablecoin race alongside formidable competitors like Société Générale (France), Circle (USA), and Tether, and could create a significant boost for both the traditional crypto market and traditional banks.
Why is a 'safe' bank like ING entering the crypto market?
As the EU's Crypto Asset Market Law (#MiCA ) is set to take effect from December 2024, major banks in Europe are beginning to transform. MiCA is a comprehensive legal framework that helps legitimize and regulate the issuance of stablecoins, requiring issuing organizations to have clear licenses and hold financial reserves in domestic banks.
This regulation has created a new opportunity: stablecoins pegged to the Euro, instead of relying on the USD as currently (such as Tether's USDT or Circle's $USDC ), will have an advantage in the EU market.
ING is seizing this opportunity. According to disclosures from two individuals directly involved in the project, the Dutch bank is collaborating with several other banks and crypto companies to develop its own stablecoin. However, progress is relatively slow due to the need for approvals from various boards, reflecting the project's caution and scale.
The stablecoin race in Europe is hotter than ever.
If #ING officially launches its own stablecoin, this bank will become a direct competitor to Société Générale – the first French bank to issue EURCV, a stablecoin backed by the Euro through its subsidiary SG Forge.
Moreover, ING is a core member of a group of 11 multinational banks representing 15 European countries – this indicates the potential for rapid expansion of this stablecoin if successfully implemented, especially within the traditional banking sector.
According to a report from JPMorgan, MiCA-compliant stablecoins are gradually gaining dominance in the European market, prominently featuring Circle's EURC. This is a clear signal that European stablecoins will gradually establish their own position, no longer overly reliant on USD-pegged coins.
Not just Europe – stablecoins are becoming a global trend.
The shift of ING and major banks in Europe reflects a global trend, as traditional banks begin to view stablecoins as a legitimate and necessary financial tool.
In Japan, the Sumitomo Mitsui Financial Group (SMFG) is planning to develop stablecoin infrastructure, aiming to use them in transactions related to tokenized bonds and digital real estate.
In the USA, Bank of America has left the door open for the possibility of issuing a USD-pegged stablecoin if Congress approves a clear legal framework. Currently, the US is considering two bills regulating stablecoins, GENIUS and STABLE, aiming to regulate the market towards greater transparency and safety.
Implications for crypto users and investors – especially on Binance.
If major banks like ING enter the stablecoin space, individual users will benefit from greater stability, transparency, and reliability compared to decentralized or less-regulated stablecoins.
For investors on Binance, this opens up opportunities to access Euro-pegged stablecoins in the near future, diversifying options for stable assets, especially for those trading cross-border or needing to avoid risks from the USD.
At the same time, the involvement of traditional banks will enhance the liquidity and reliability of the entire stablecoin market, helping to mitigate the risk of sudden price crashes like some incidents in the past (e.g., Terra's UST).
Conclusion: ING – a strategic piece on the global stablecoin map?
Although still in the implementation phase and not officially announced, ING's stablecoin project demonstrates the seriousness of traditional financial institutions towards the crypto space. If launched successfully, ING's stablecoin will not only be a financial product but also a symbol of the intersection between the traditional banking system and the modern blockchain world.
Meanwhile, users and investors need to proactively monitor the movements from major banks, as their participation could reshape the entire stablecoin market, not only in Europe but on a global scale.
Risk warning:
The cryptocurrency market always carries many risks regarding price and legality, especially with new financial products like bank-issued stablecoins. Investors should conduct thorough research (DYOR) and exercise caution before making any decisions. Stablecoins, while stable, can still be affected by policies, operational mechanisms, or financial crises.
