Nine leading European banks have announced the creation of a new company headquartered in Amsterdam to issue a regulated euro stablecoin. This move marks a major disruption in the payments sector and highlights how traditional financial institutions are increasingly adopting digital assets.

Until now, US dollar stablecoins and American providers have clearly dominated the market – but European major banks are now bringing momentum to the euro area. The launch is planned for the second half of 2026. Participants include ING, UniCredit, DekaBank, KBC, CaixaBank, SEB, Raiffeisen, Banca Sella and Danske Bank.

A european response to Dollar stablecoins

The stablecoin market is almost entirely dominated by US dollar tokens such as USDT or USDC. Euro stablecoins have so far played only a minor role – their circulation currently stands at only around USD 400 million according to Cryptoslate data, less than one percent of the total market. The consortium therefore aims to create a regulated and trustworthy alternative to reduce reliance on the dollar and strengthen Europe’s position in digital payments.

Market capitalization EUR stablecoins / Source: Cryptoslate.com

The company is to be licensed as an e-money institution under the supervision of the Dutch central bank and operate in line with the new MiCA regulation . The banks are also responding to concerns from the ECB, which has repeatedly classified stablecoins as a potential risk to monetary policy and financial stability.

Between opportunity and risk

A bank-backed euro stablecoin could make cross-border payments faster and cheaper while offering institutional players a regulated gateway to DeFi and Web3. However, its success will depend on whether it gains acceptance beyond the institutional circle. Only if it is integrated into DeFi protocols, e-commerce and payment providers can it establish itself as a standard in the euro area. Otherwise, it risks remaining marginal compared to dollar stablecoins.

Strategic positioning

The initiative underscores the pressure on the ECB to move faster on the digital euro. If the banks succeed in building trust and ensuring interoperability, the euro stablecoin could become a strategic cornerstone of a digital financial infrastructure “made in Europe” – and bridge the gap between traditional finance and Web3.

A key success factor will be the interoperability of the euro stablecoin. If it can be used not only in the banking environment but also in DeFi protocols, with payment providers and in e-commerce, it could quickly establish itself as a standard in the European market. At the same time, the initiative could increase pressure on central banks to accelerate the digital euro in order not to be overtaken by private sector solutions.

The introduction of a euro stablecoin backed by major banks marks an important step toward a digital financial infrastructure “made in Europe.” If trust can be built and widespread adoption achieved, the project could not only strengthen Europe’s position in global crypto and payments, but also act as a bridge between traditional finance and the Web3 ecosystem.