BRUSSELS–Nine major banks from across Europe said they are forming a joint venture to issue a fully MiCA-compliant euro stablecoin by 2026.
The goal is to establish a regulated standard for digital payments as the European Central Bank’s (ECB) digital euro project continues to stall, according to media reports.
The group includes ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International, representing eight countries and a mix of retail, corporate, and cooperative lenders, Yahoo Finance reported, adding the banks have incorporated a new entity in the Netherlands and are applying for an electronic money institution (EMI) license from De Nederlandsche Bank.
If approved, the stablecoin will be backed 1:1 with euro reserves held in segregated accounts and invested in low-risk, liquid assets.
The consortium says it will leverage blockchain for transparency, programmability, and instant settlement, while ensuring compliance with MiCA’s stringent requirements for reserve management, redemption rights, and disclosure.
A Challenge to USD Stablecoins
Yahoo Finance said the euro stablecoin is expected to directly challenge the growing dominance of dollar-backed stablecoins, which currently account for most of the share of global stablecoin volume.
The project also underscores growing frustration with the ECB’s slow rollout of its digital euro, Yahoo Finance added.
