European banks have unveiled a strategy for a new EUR-backed stablecoin, following a growing push for digital payment autonomy in the region during US market dominance.
Following this announcement, a group of nine European banks, including ING, SEB, and UniCredit, aims to form a new company and to launch a EUR-denominated stablecoin, as an initiative aimed at counteracting US digital market dominance. The plan to launch a new stablecoin will have the possibility to draw the region’s crypto-averse investors into the digital assets fold, as well as to potentially speed up efforts to roll out a digital version of the EUR.
In addition, a host of top US financial firms have been preparing to launch their own USD-backed crypto tokens, a strategy that took place after President Donald Trump signed a law overseeing rules for stablecoins that could further cement US hegemony.
More information on the strategy to launch the EUR stablecoin
According to Reuters, officials of UniCredit, ING, Banca Sella, KBC, Danske Bank, Dekabank, SEB, CaixaBank, and Raiffeisen mentioned that they plan to roll out a new EUR-denominated stablecoin in the second half of 2026. At the same time, as stablecoins are a type of cryptocurrency designed to provide users with optimised price stability by pegging to an existing fiat currency, the launch is expected to offer efficient, programmable, and secure P2P payment solutions for customers and users around the world.
In addition, the new EUR stablecoin will be managed by a Netherlands-based company formed by the consortium, and is set to be licensed and supervised by the Dutch Central Bank, according to the joint announcement. Furthermore, the new offering will fall under the EU’s MiCAR (Markets in Crypto-Assets Regulation) scope, a strategy which could help boost demand in the region among more risk-averse European investors, firms, and institutions.
The announcement follows a growing push for optimised digital payment autonomy in the region of Europe, as US market dominance grows amid support from the Trump administration. The US stablecoins currently dominate the overall global market, accounting for some 99% of total market capitalisation, representing a sum of USD 292 billion. EUR-denominated stablecoins are small by comparison, with an estimated market cap of about EUR 500 million (USD 587 million).
