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A coalition of leading European banks has announced plans to launch a MiCA-compliant euro stablecoin, aiming to reshape the continent’s digital payment landscape and strengthen its financial sovereignty. The project, unveiled in a joint statement by ING on Thursday, will see the stablecoin issued in the second half of 2026.
Dutch lender ING and Italy’s UniCredit are spearheading the initiative, joined by seven other banks across the European Union. By pegging the stablecoin directly to the euro and aligning it with the Markets in Crypto-Assets (MiCA) regulation, the group seeks to create a trusted and regulated alternative to the US-dominated stablecoin market.
“This development requires an industry-wide approach, and it’s imperative that banks adopt the same standards,” — Floris Lugt, digital asset lead at ING, in the announcement.
The MiCA-compliant euro stablecoin initiative brings together nine banks from eight EU member states:
The consortium has established a new company in the Netherlands to manage the development and distribution of the stablecoin. The group emphasized that the project remains open to additional banks joining in the future.
According to the banks, the MiCA-compliant euro stablecoin will support “near-instant, low-cost cross-border payments” while offering programmable features to improve supply chain management and settlements for both securities and cryptocurrencies.
“Digital payments are key for new euro-denominated payments and financial market infrastructure,” Lugt added.
The decision comes as the European Central Bank (ECB) continues to deliberate over the rollout of a central bank digital currency (CBDC), known as the digital euro. ECB Executive Board member Piero Cipollone recently estimated that the earliest launch date for the digital euro would be 2029.
That timeline, combined with regulatory progress on MiCA, has spurred speculation that the MiCA-compliant euro stablecoin may fill the gap. Some commentators have even described the stablecoin as a “digital euro’s obituary notice,” suggesting it could undercut momentum for the CBDC.
Cipollone, however, stressed that the digital euro remains on track for further legislative discussion by May 2026, when the European Parliament is expected to outline a general framework.
Still, analysts note that a privately issued, regulated stablecoin may have advantages. Unlike a CBDC, which is state-controlled, the stablecoin will operate under the supervision of banks and regulators, potentially offering faster deployment and greater flexibility for businesses.
The launch of a MiCA-compliant euro stablecoin also reflects Europe’s ambition to reduce reliance on US-backed digital assets such as USDC and Tether (USDT), which currently dominate global stablecoin trading volumes.
By aligning with MiCA, the euro stablecoin aims to provide regulatory certainty and investor protection, addressing long-standing concerns about transparency and consumer safety in the stablecoin sector.
“This initiative shows that Europe is not willing to cede its financial infrastructure to US providers,” said Maria Demertzis, senior fellow at Bruegel, in an interview with Financial Times. “It also demonstrates how MiCA can become a global benchmark for digital asset regulation.”
The preference for regulated stablecoins over CBDCs is not unique to Europe. In the US, the Trump administration banned federal CBDC development in early 2025, while pledging to support US dollar-backed stablecoins as part of its financial strategy.
The MiCA-compliant euro stablecoin faces several hurdles before its 2026 debut. The consortium must finalize technological infrastructure, secure regulatory approval, and demonstrate interoperability with existing payment systems.
If successful, the stablecoin could provide 24/7 settlement across borders, programmable finance capabilities, and a stepping stone for Europe’s broader digital finance ambitions.
Stablecoins can deliver immediate benefits to both banks and consumers, said Atsushi Kuwabara, chief business development officer at Japanese exchange Bitbank. Europe’s initiative will be closely watched worldwide as a test case for regulated innovation.
For now, all eyes are on whether the banks can deliver on their promise to make the MiCA-compliant euro stablecoin a trusted standard for payments across the EU and whether it can coexist with, or ultimately compete against, the future digital euro.
