Executive Brief

Nine major European banks, including ING and UniCredit, are launching a euro-backed stablecoin to reduce dependence on U.S.-dominated digital markets, aiming to strengthen Europe’s strategic autonomy in payments.

Open Foresight: Banks will launch Euro Stablecoin

A consortium of nine leading European banks—ING, UniCredit, Danske Bank, SEB, KBC, CaixaBank, DekaBank, Raiffeisen Bank International, and Banca Sella—has announced the creation of a Netherlands-based company that will issue a euro-denominated stablecoin. The token, expected to launch in the second half of 2026, is positioned as a fast, low-cost tool for payments and settlements across Europe and beyond.

The move responds to the accelerating dominance of U.S. dollar-backed stablecoins, which account for nearly all of the $300 billion global market. By contrast, euro-pegged tokens remain marginal, with just $620 million in circulation, according to the Bank of Italy. European banks argue that their joint initiative will provide businesses and consumers with a credible alternative, reinforcing Europe’s financial sovereignty.

The European Central Bank remains cautious, warning that privately issued stablecoins may create risks for monetary policy and stability. Yet commercial banks see an opportunity to innovate while resisting the ECB’s push for a digital euro, which some fear could weaken their deposit base.

The strategic significance extends beyond payments. Stablecoins are increasingly used in cross-border trade, corporate treasury management, and fintech platforms. With emerging economies adopting dollar-backed tokens as substitutes for local currencies, Europe faces pressure to avoid being sidelined in the next stage of financial digitalization.

The new project will appoint a CEO shortly, with scope to expand membership beyond the founding institutions. Analysts view the initiative as a test of whether European financial institutions can align around innovation while navigating regulatory scrutiny and competitive forces from both U.S. firms and decentralized crypto players.

Strategic Takeaways:

• • Nine European banks join forces to launch a euro-denominated stablecoin in 2026.

• • Initiative aims to counter U.S. dominance in the $300 billion global stablecoin market.

• • ECB remains skeptical, preferring a centrally backed digital euro.

• • Stablecoin designed for fast, low-cost payments, cross-border transactions, and settlements.

• • Europe faces strategic pressure to innovate or risk being sidelined in digital finance.

 

Insight & Source: Reuters – Full article

Image credit: Reuters / OpenForesight visual