Nine European Banks Form Consortium to Launch Euro-Backed Stablecoin by 2026

Key Insights

• Nine European banks form consortium to launch Euro-backed stablecoin.

• The new token to launch under the MICA framework by Q2 2026

Europe’s most prominent financial institutions are stepping into the stablecoin race. A group of nine leading banks from across the continent has formed a consortium to issue a fully euro-backed stablecoin, aiming to provide a regulated, European alternative to the dollar-dominated stablecoin market.

The new token, which is expected to launch in the second half of 2026 pending regulatory approval, will be issued under the EU’s Markets in Crypto-Assets (MiCA) framework.

Who’s Behind the Project?

The consortium includes some of Europe’s most recognised lenders: ING (Netherlands), Banca Sella (Italy), KBC (Belgium), Danske Bank (Denmark), DekaBank (Germany), UniCredit (Italy), SEB (Sweden), CaixaBank (Spain) and Raiffeisen Bank International (Austria).

Together, they represent a broad mix of retail, corporate, and cooperative banking powerhouses across eight countries. To move the project forward, the group has incorporated a new entity in the Netherlands and is seeking an electronic money institution (EMI) license from De Nederlandsche Bank.

How the Euro-backed Stablecoin Will Work

According to the consortium, the euro stablecoin will be fully backed 1:1 by euro reserves held in segregated accounts and invested in safe, liquid assets. The project will also leverage blockchain technology to ensure transparency, programmability, and instant settlement. MiCA rules require issuers to maintain strict reserve management, offer redemption rights, and disclose key information to investors, something this consortium is keen to highlight as a core feature.

Why Now?

The move comes at a time when U.S. dollar stablecoins dominate the global market, accounting for the vast majority of trading volume. With U.S. regulators giving more explicit rules for stablecoin issuers, European banks are keen to ensure the euro’s relevance in the digital economy.

At the same time, the European Central Bank’s (ECB) digital euro project has faced delays, with policymakers hinting that a fully functioning central bank digital currency (CBDC) may not arrive until 2029. By launching a bank-backed stablecoin years earlier, the consortium hopes to create a private-sector complement to the eventual digital euro and provide European businesses and consumers with a regulated, blockchain-based payment tool in the meantime.

Bridging Banks and Blockchain

Analysts say the project could be a game-changer for Europe’s digital finance landscape. Not only would it give the private sector earlier access to programmable money, but it could also serve as a testbed for CBDC integration.

“While large tech companies have been quick to experiment with digital currencies, this move shows Europe’s banking sector is ready to lead the charge in a regulated, euro-centric way,”

One industry observer noted.

If successful, this initiative would mark one of the most ambitious attempts to fuse traditional banking with blockchain technology, accelerating Europe’s transition toward a hybrid system of public and private digital money.

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