• Nine European banks, including ING, Banca Sella, KBC, and Danske Bank, have collaborated to launch a euro-backed stablecoin.

  • The collaboration aims to provide a local alternative for the EU to dollar-denominated stablecoins in the region.

  • As the group formed a company in the Netherlands, it aims to obtain a license from the Dutch central bank as an electronic money institution.

Nine EU banks are collaborating to launch a fully compliant euro-backed stablecoin, aiming to compete with dollar-denominated crypto assets in the region.

ING, Banca Sella, KBC, and others plan to launch a euro stablecoin compliant with MiCA.

A group of major European banks, including ING, UniCredit, Danske Bank, CaixaBank, and SEB, are collaborating on a euro-backed stablecoin project, according to a statement released on Thursday. The project seeks to provide a European alternative to dollar-denominated stablecoins.

The alliance reported that it has established a Netherlands-based entity to oversee the initiative and aims to obtain a license from the Dutch central bank for the new company.

The group has also expressed plans to appoint a CEO for the new company in the near future, pending regulatory approval. They also expressed interest in expanding the initiative by accepting more banking partners.

The new stablecoin will be regulated under the EU's Markets in Crypto-Assets (MiCA) framework and is scheduled for a potential launch in the second half of 2026.

Floris Lugt, head of digital assets at ING and co-chair of the initiative, stated: "We believe this development requires an industry-wide approach, and it is essential for banks to adopt the same standards."

The European Union has tightened its grip on the cryptocurrency sector over the past few years, following the bloc's issuance of the MiCA regulation in 2023. Since then, cryptocurrency activities have been subject to stricter measures, including those related to stablecoin transactions.

Following the passage of the GENIUS Act in the United States in July, the EU has seemingly accelerated its plans for a digital euro, with expectations of launching it on the Ethereum or Solana network.

USDC holds a significant share of the stablecoin market in the region after Circle obtained the first license for a dollar-linked digital currency under MiCA last year. This development was accompanied by the delisting of Tether USDT across several European exchanges due to non-compliance with EU regulations, leading to a decrease in market demand from the region.

Despite the existence of euro-backed stablecoins in the region, the market is still largely dominated by dollar-denominated crypto assets. The introduction of a fully compliant stablecoin through cooperation among European banks aims to level the playing field, providing a more localized option for users.

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