Nine Major European Banks Unite to Launch MiCA-Regulated Euro Stablecoin

Dec 2, 2025

2 min read

Nine Major European Banks Unite to Launch MiCA-Regulated Euro Stablecoin — Unsplash - bruno neurath-wilson

Nine leading European banks announced on 25 September 2025 a joint initiative to develop a euro-pegged stablecoin under the Markets in Crypto-Assets (MiCA) regulatory framework, with issuance planned for the second half of 2026. The consortium comprises ING, UniCredit, Banca Sella, KBC, Danske Bank, DekaBank, SEB, CaixaBank, and Raiffeisen Bank International, representing eight EU member states. The founding members have established a new Netherlands-based company that aims to be licensed and supervised by the Dutch Central Bank as an e-money institution.

The initiative seeks to provide a credible European alternative in a market where dollar-denominated stablecoins currently account for approximately 99% of total market capitalisation, or $292 billion, while euro-denominated stablecoins have an estimated market cap of roughly €500 million. Floris Lugt, ING's digital assets lead and joint public representative of the project, stated that digital payments are key for new euro-denominated payments and financial market infrastructure, adding that it is imperative that banks adopt the same standards. The stablecoin will offer near-instant, low-cost transactions with 24/7 access, cross-border payments, programmable payments, and digital asset settlements. A Citi report projects that global stablecoin issuance will reach $1.9 trillion by 2030 in its base case, with a bull-case estimate of $4 trillion. Mark Aruliah, Head of EMEA Policy and Regulatory Affairs at Elliptic, warned that if European banks do not move quickly to adopt and scale credible euro-denominated stablecoins, dollar-backed alternatives will continue to dominate by default. The European Central Bank has raised concerns that overreliance on U.S. dollar stablecoins could weaken Europe's monetary sovereignty, while ECB Executive Board member Piero Cipollone estimated that the digital euro could become a reality no earlier than 2029.

The consortium remains open to additional banks joining, and the initiative represents Europe's response to the accelerating stablecoin developments in the United States following the GENIUS Act and the decisive framework-building by regulators in Asia, including Singapore's MAS and Hong Kong's HKMA.

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