Nine European Banks Launch Euro-Backed Stablecoin to Challenge US Dollar Dominance

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Nine of Europe’s leading banks have come together to issue a euro-backed stablecoin, marking a significant step toward creating a trusted European digital payment system. However, the project is designed to challenge the dominance of the U.S.-based stablecoins and offer Europe a payment system of its own, with the region’s strict regulations.

Nine Banks Unite to Launch Stablecoin

The banks behind this initiative include Internationale Nederlanden Groep (ING), UniCredit, Danske Bank, SEB, CaixaBank, KBC, Banca Sella, Raiffeisen Bank International, and DekaBank.

Together, they have formed a new company in the Netherlands that will oversee the stablecoin project. Additional banks are invited to join, and a CEO is expected to be appointed soon, pending regulatory approval.

The banks will operate under EU’s landmark Markets in Crypto-Assets Regulation (MiCAR), ensuring robust regulatory oversight and consumer protection. The first issue of this euro-backed digital coin is expected in the second half of 2026.

Fast, Low-Cost, and 24/7 Payments

The new stablecoin is designed to offer fast, low-cost payments and settlements, both domestically and across borders. It will operate 24/7, giving businesses and individuals constant access to efficient transactions.

Beyond basic payments, it will support programmable transactions and can settle a wide range of assets, from securities to cryptocurrencies, improving transparency and efficiency across financial markets.

Euro-backed Stablecoin Alternative to US Coins

One key goal of the stablecoin is to provide Europe a euro-backed stablecoin alternative to US dollar coins, strengthening the region’s strategic independence in payments.

However, Europe’s cross-border payments market is large, exceeding $250 billion in 2025 and expected to reach $320 billion by 2030.

Stablecoins have grown rapidly, with a $250 billion market this year, but euro-backed coins make up less than 1%, showing a clear gap this initiative wants to fill.