European Banks Seek to Challenge Dollar Dominance with Euro Stablecoin

With the vast majority of stablecoins backed by US dollars, nine European banks have formed a consortium to launch a euro-denominated stablecoin to offer an alternative.

Banca Sella, CaixaBank, Danske Bank, DekaBank, ING, KBC, Raiffeisen Bank Internation, SEB and UniCredit have joined forces to deliver a Markets in Crypto-Assets Regulation (MiCAR)-compliant coin, leveraging blockchain technology, as they seek to offer “a trusted European payment standard in the digital ecosystem”.

The banks say the stablecoin will provide near-instant, low-cost payments and settlements and enable 24/7 access to cross-border payments, programmable payments, and improvements in supply chain management and digital asset settlements, which can vary from securities to cryptocurrencies.
The stablecoin is expected to be first issued in the second half of 2026, and the company the consortium has formed in the Netherland is aiming to be licensed and supervised by the Dutch Central Bank as an e-money institution.

The consortium stresses it is open to additional banks joining – a CEO is expected to be appointed in the near future, subject to regulatory approval. The initiative will provide a real European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments, the consortium states, adding that individual banks will be able to provide value added services, such as a stablecoin wallet and custody.

“A credible and reliable stablecoin may become an instrumental part of the future financial system,” says John Turesson, co-head of corporate & investment banking at SEB. ““As a custodian and investment bank, we believe that a bank-backed stablecoin, with its non-speculative nature, can play a fundamental role in the rapidly evolving digital asset landscape and drive innovation within financial assets and services.”