A consortium of nine major European banks, including financial giants ING, UniCredit, and Danske Bank, has announced a joint initiative to launch a regulated euro stablecoin. The plan, unveiled on Thursday, September 25, 2025, details the formation of a new, collectively-owned company in the Netherlands that will seek an e-money license to issue the stablecoin by 2026. This landmark move is a direct strategic response to the overwhelming dominance of U.S. dollar-backed tokens and represents a coordinated effort by Europe's banking establishment to build a sovereign, bank-grade digital currency under the new EU MiCA regulation.

• Nine of Europe's leading financial institutions are joining forces in a landmark stablecoin project.
• The clear economic and geopolitical motivations driving this coordinated push for a digital euro.
• EU's new comprehensive crypto law provides a "home field advantage" for this initiative.

This announcement marks a significant counter-move by the European financial sector, which has largely watched from the sidelines as U.S.-based and U.S. dollar-denominated stablecoins have grown to dominate the digital asset landscape. The initiative is a clear signal that the continent's banking titans are no longer content to cede this critical piece of future financial infrastructure to American tech firms and crypto companies. By uniting, these powerful European banks are making a clear statement of intent to compete directly and reclaim monetary relevance in the digital age.

The primary motivation for this project is the stark reality of the current market. As of this week, the total stablecoin market cap surged to a record high of nearly $300 billion, with over 98% of that value denominated in U.S. dollars. This "digital dollarization" is seen by many in Europe as an extension of U.S. financial hegemony, a trend that could marginalize the euro in the rapidly growing world of on-chain finance and digital payments. The creation of a robust, liquid, and trusted euro stablecoin is viewed as an essential step to ensure the euro's competitiveness and relevance.

The legal foundation for this ambitious project is the EU MiCA regulation, which came into effect for stablecoin issuers in late 2024. This comprehensive, bloc-wide legal framework provides a clear and detailed rulebook, giving the consortium a significant "home field advantage." They can build their euro stablecoin with full legal certainty for a market of nearly 450 million people. However, the path is not without its political complexities. The very foundation of MiCA's unified market has recently been tested, as demonstrated by France's challenge to the law's "passporting" system, signaling that internal EU tensions could still present hurdles.

The decision by the nine European banks to form a new, jointly-owned company is a crucial strategic choice. A stablecoin issued by a single bank would likely struggle for adoption among its competitors. A neutral, industry-wide utility, however, has the potential to become a universal settlement asset for the entire European banking sector. This collaborative approach, as ING's Floris Lugt noted, is seen as imperative for creating a unified standard for new euro-denominated financial infrastructure, leveraging the efficiency and 24/7 settlement capabilities of blockchain technology.

This European initiative is unfolding within a broader geopolitical context of strategic realignment in digital finance. The move by the European banks can be seen as a direct response to the coordinated efforts of the Anglo-American financial axis, which recently formed a US-UK partnership to align their crypto regulation. As the world's major economic blocs begin to solidify their strategies, this new euro stablecoin represents "Team Europe's" most significant play yet to ensure it has a sovereign, bank-grade instrument to compete on the global stage.

While the target launch date of 2026 provides a long runway, the consortium faces significant challenges. It must successfully navigate the Dutch licensing process, build a resilient technical infrastructure, and compete with existing, privately issued euro stablecoins. Nonetheless, this announcement is a watershed moment. It is the most powerful and coordinated move by Europe's traditional financial establishment to not only adopt blockchain technology but to actively shape the future of money in the digital era.

FAQs

What did the European banks announce?
A consortium of nine major European banks, including ING and UniCredit, announced they are forming a new company to launch a regulated euro stablecoin by 2026.

Why are they launching a euro stablecoin?
The primary motivation is to counter the overwhelming dominance of U.S. dollar-backed stablecoins in the global market. They aim to create a sovereign, bank-grade digital version of the euro to ensure its relevance in the future of finance and digital payments.

How does the EU MiCA regulation affect this project?
The EU MiCA regulation provides a clear and comprehensive legal framework for stablecoins across the entire 27-nation bloc. This gives the banks the regulatory certainty they need to build and launch the product for a massive, unified market.

Who are the banks involved in this initiative?
The nine European banks in the initial consortium are ING, UniCredit, Danske Bank, CaixaBank, Banca Sella, DekaBank, SEB, and Raiffeisen Bank International.