Today nine European banks from eight countries unveiled plans for a joint euro stablecoin to be issued in the second half of 2026. The banks are Banca Sella, CaixaBank, Danske Bank, DekaBank, ING, KBC, Raiffeisen Bank International, SEB and UniCredit.
Like other stablecoins, it will enable 24/7 cross border and programmable payments, and act as an on-chain settlement asset for digital securities or cryptocurrencies. The consortium has set up a company in the Netherlands and will apply for a MiCAR license with the Dutch Central Bank. While there are nine banks so far, they are open to other banks joining. Banks will separately provide wallet and custody services.
“We believe this development requires an industry-wide approach, and it’s imperative that banks adopt the same standards,” said Floris Lugt, Digital Assets lead at ING and joint public representative of the initiative.
The initiative represents more than just technological innovation. The banks describe the stablecoin as providing a real alternative to US dollar denominated digital currencies, saying it will contribute to “Europe’s strategic autonomy in payments”. That’s similar to the description that the European Central Bank has used for the digital euro. The key difference is that a stablecoin can launch at least three years earlier than the euro CBDC. Given delays in the passage of legislation, the digital euro won’t launch before mid 2029 at the earliest.
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