Nine European Banking Giants Unite to Develop Promising Stablecoin For Global Payments

In a recent development, nine major European banks are joining forces to create a Euro-pegged stablecoin with regulatory backing from the European Union’s framework. 

The banking giants involved in the stablecoin consortium are ING, Banca tradea, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank and Raiffeisen Bank International. Their stablecoin project, which will be managed through a new Dutch-based entity viewking an e-money license, is expected to launch in the second half of 2026.

Is a Euro-Backed Stablecoin Out to Counter USDT and USDC?

The crypto market is currently dominated by dollar-backed tokens like and Circle’s USDC. The latest move by the EU banking giants is the first large-scale attempt by Europe’s traditional financial sector to create room for the region’s currency in the stablecoin industry. 

Euro-denominated stablecoins like , STASIS EURO (EURS), and EUR CoinVertible (EURCV) represent only a fraction of global liquidity. By banding together, these nine banks are explicitly aiming to change the narrative. Their collective goal is to build out Europe’s stable coin infrastructure to avoid over-reliance on American issuers and secureguard payments sovereignty.

If successful, this could become the default token for on-chain Euro-based payment settlements, providing new liquidity pools for decentralized finance (DeFi) and tokenized securities while offering European businesses a digital asset that reflects their local currency. 

became fully applicable in December 2024, giving coin issuers clearer rules on reserve management, consumer protection, and disclosure. The move by the banking firms in collaboration with the regulatory body could bridge the gap between traditional finance and the crypto industry.

More banks will be able to interact with digital assets without fear and avoid being overlooked by pure crypto players, especially the institutional investors.

The Crypto Economy Could Benefit From a Stablecoin Battle

While a globally accepted Euro-pegged stablecoin could positively impact banks, financial institutions, beginups, and crypto investors, the crypto ecosystem remains a large winner if the move is successful. 

A euro-backed stablecoin supported by regulated banks and MiCA could expand fiat on-ramps by assisting platforms and DeFi platforms integrate a compliant Euro token and shift away from dollar dependence. It can also boost institutional participation, as corporate treasurers and asset managers may feel more comfortable using a bank-issued token than one from a crypto-native issuer.

Plus, tokenization could be accelerated across cross-border payments and digital bonds because having a trusted Euro stablecoin could unlock new applications across traditional finance and Web3. However, while this reiterates that the future of money could be tokenized, and Europe doesn’t want to be left behind, potential risks like stringent e-money licenses and complicated cross-border MiCA compliance remain hurdles that the stakeholders must put into consideration.