Europe’s Banks Unite for a Digital Payments Push
Nine of Europe’s leading banks — ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank — are joining forces to issue a blockchain-based euro stablecoin by 2026. The project, revealed in a joint announcement, is being framed as nothing less than a strategic move to secure Europe’s financial autonomy.
The stablecoin will comply with the EU’s Markets in Crypto-Assets (MiCA) regulation, ensuring that it operates within Europe’s new digital finance rulebook.
Fast, Low-Cost, and Always-On Payments
Denmark’s largest bank, Danske Bank, emphasized that the euro stablecoin will support near-instant, low-cost payments and settlements, including 24/7 cross-border transfers and programmable payments. Beyond consumer usage, it’s also expected to improve supply chain management and digital asset settlements, directly addressing pain points in Europe’s financial ecosystem.
Flaminia Lucia Franca, head of transaction banking at one of the consortium members, underlined the transformative potential:
Dutch Entity and 2026 Timeline
The banks have formed a new company in the Netherlands to oversee the project and will apply for an e-money institution license under Dutch supervision. The consortium signaled openness to more banks joining and said a CEO will be appointed once regulators give the green light.
Commercial banks involved plan to offer value-added services such as custody, wallet management, and other financial tools tied to the euro stablecoin.
Sovereignty Concerns Drive the Project
EU policymakers have grown increasingly uneasy about the dominance of U.S. dollar-based stablecoins, seeing them as a threat to Europe’s sovereignty over payments. While the U.S. continues to rely on private dollar-pegged tokens — especially after President Donald Trump banned central bank digital currencies (CBDCs) earlier this year — Europe is doubling down on its own stablecoin and digital euro efforts.
The launch of the euro stablecoin is being presented as a bridge to Europe’s eventual digital euro, which is still years away.
Digital Euro Faces Longer Roadmap
European Central Bank (ECB) officials have acknowledged that a fully operational digital euro is unlikely before 2029. Bundesbank President Joachim Nagel recently stated that such a currency would be “a sensible response to stablecoins” and would strengthen Europe’s independence.
ECB President Christine Lagarde has said the institution will be technically ready by October 2025, but actual rollout depends on legislative approval from the European Parliament, Council, and Commission.
In the meantime, the bank-led MiCA-compliant euro stablecoin will serve as Europe’s first serious counterweight to U.S. stablecoins, marking a turning point in the battle for control of the global digital economy.
