Santander explores euro and dollar stablecoins alongside retail crypto offerings via Openbank.
European banks like BBVA and Societe Generale are advancing stablecoin issuance and crypto services.
Santander has a decade-long blockchain history, supporting tokenized bonds and digital payments.
Banco Santander SA is advancing plans to expand its digital asset offerings, including early-stage development of a stablecoin. The Spanish bank aims to provide cryptocurrency access to retail clients of its digital banking arm, Openbank. This move reflects growing interest among European lenders to deepen engagement with digital currencies following new EU regulations.
Early Stablecoin Development and Licensing Efforts
According to a report by Bloomberg, the stablecoin initiative remains in its early phases. Openbank has applied for licenses to provide retail crypto services under the European Union’s Markets in Crypto-Assets (MiCA) regulation, which recently took full effect. This licensing step aims to allow the bank to legally offer digital currency products across its operating markets.
Santander is reviewing solutions for releasing stablecoins in both euros and U.S. dollars. In regions such as parts of Latin America, where Santander conducts most of its business, dollar-backed stablecoins are growing in prominence. The bank wants to issue its own crypto token and also offer the use of existing stablecoins.
Stablecoins’ Growing Role in Financial Services
Many people in the crypto community use stablecoins to transfer money more quickly compared to the normal process. Even so, today they have roles that go further than trading. Businesses and people are adopting stablecoins for international money transfers, as these options are fast and usually less costly.
Bonds and other traditional assets may soon be settled through a type of payment using stablecoins and blockchain. The total value of stablecoins is now around $250 billion and Tether Holdings SA has issued the most. Quarterly revenue for Tether is considerable because its tokens are supported by Treasury securities.
Competition Among European Banks in Crypto Space
Santander’s exploration of stablecoins follows moves by other European banks. BBVA SA, a fellow Spanish bank, plans to roll out retail crypto services after receiving approval from Spain’s market regulator. BBVA already offers crypto products in Switzerland and Turkey and is testing a platform for bank tokens developed by Visa Inc. Other European institutions are also active in stablecoin issuance. Societe Generale SA’s crypto subsidiary issues a euro-denominated stablecoin.
Deutsche Bank’s DWS Group, Flow Traders Ltd., and Galaxy Digital Holdings Ltd. have partnered to develop a euro stablecoin as well. Santander has a history of blockchain involvement, having invested early in startups such as Ripple Labs Inc. through its venture capital fund. The bank participated in blockchain payment initiatives like Fnality International and has worked on tokenized bond offerings. Nearly a decade ago, Santander integrated blockchain technology into a payments app, marking early adoption within traditional finance.
Openbank operates in several European countries including Spain, Portugal, the Netherlands, and Germany. Pending regulatory approval, the digital bank could launch crypto services later this year. The entry of Santander into retail stablecoins marks an important development in Europe’s evolving digital asset landscape. It follows broader trends in regulatory frameworks and industry adoption, with major banks increasingly considering digital currencies as part of their financial service offerings.
