European Banks Plan MiCA-Compliant Euro Stablecoin Launch
- Nine European banks plan to launch MiCA-compliant Euro stablecoin by 2026.
- Consortium aims to create regulated payment infrastructure in Europe.
- Project could impact DeFi and euro-denominated assets globally.
Nine major European banks, including ING and UniCredit, plan to launch a MiCA-compliant Euro stablecoin in 2026, establishing a regulated payment infrastructure across Europe.
The Euro stablecoin, rivaling US-dollar counterparts, offers enhanced transparency using blockchain technology, potentially transforming the European financial landscape and impacting cryptocurrencies and DeFi protocols.
The consortium of nine major European banks plans to launch a MiCA-compliant Euro stablecoin by the second half of 2026. This initiative aims to rival US-dollar stablecoins and establish a regulated payment infrastructure across Europe.
Included banks like ING, UniCredit, and Danske Bank are involved. They have established a company in the Netherlands to oversee the stablecoin’s development and management. A CEO will be appointed following regulatory approval. Floris Lugt, Digital Assets Lead at ING, noted, “Digital payments are key for new euro-denominated payments and financial market infrastructure. They offer significant efficiency and transparency, thanks to blockchain technology’s programmability features and 24/7 instant cross-currency settlement. We believe this development requires an industry-wide approach, and it’s imperative that banks adopt the same standards” – ING Newsroom.
The launch of the stablecoin is expected to significantly affect the euro stablecoin landscape. Anticipation already sees potential impacts on platforms like Curve and Uniswap as the launch approaches.
The stablecoin will provide programmable payments and 24/7 settlement, with strategic implications for corporate treasuries, cross-border payments, and DeFi integrations. It aims to establish a competitive edge in digital finance.
Aside from European DeFi protocols, major cryptocurrencies like ETH, BTC, and other Layer 1 tokens might experience indirect effects through new euro trading pairs.
The introduction of a MiCA-compliant stablecoin could shift market dynamics, potentially increasing euro stablecoins’ presence in DeFi. This development arises as the digital euro CBDC launch faces delays until 2029.
