Nine of Europe’s largest banks are joining forces to launch a euro-based stablecoin, marking a significant step toward strengthening the continent’s role in digital finance. The initiative, led by UniCredit, ING, DekaBank, and CaixaBank, seeks to challenge the dominance of dollar-backed tokens such as Tether’s USDT and Circle’s USDC.
The consortium—also comprising Banca Sella, KBC Group, Danske Bank, SEB, and Raiffeisen Bank International—plans to introduce the stablecoin by the second half of 2026. A new company, established in the Netherlands, will manage issuance and oversee the project. The group has also left the door open for additional European banks to participate.
According to the banks, the project is designed to bolster “Europe’s strategic autonomy in payments,” providing a strong regional alternative in the fast-growing stablecoin sector. The move comes as European financial institutions grow more receptive to digital assets following the rollout of the EU’s comprehensive crypto regulations.
Momentum around euro-backed stablecoins has been building. Earlier this year, a venture supported by DWS Group launched its own digital euro, while reports suggest other major players, including Banco Santander, are exploring similar projects.
Stablecoins—digital tokens tied to traditional currencies like the euro or dollar—are increasingly used for cross-border payments, digital settlements, and tokenized assets. Bloomberg Intelligence estimates they could facilitate over $50 trillion in annual payments by 2030, representing nearly a quarter of all consumer transactions.
Floris Lugt, digital assets lead at ING and a representative for the consortium, noted that programmable stablecoins could streamline complex supply chains by automating payments upon delivery of goods. This efficiency could reduce friction and enhance trust in global trade.
Despite rising interest, euro-backed stablecoins remain a niche market compared to their dollar counterparts. Data from DeFiLlama shows fewer than €500 million in circulation, versus more than $170 billion worth of dollar-pegged tokens. However, recent U.S. regulatory clarity and growing adoption by firms such as PayPal and Robinhood suggest the sector is gaining global traction.
