A consortium of nine major European banks, including ING and UniCredit, announced on Thursday that they are creating a new Amsterdam-based company to launch a euro-denominated stablecoin by the second half of next year. The move aims to reduce reliance on U.S.-backed tokens and strengthen Europe’s role in the digital payments market.
The decision comes as U.S. financial firms prepare their own stablecoins, backed by President Donald Trump’s new regulatory framework, which could further cement America’s dominance in the sector.
Stablecoins—cryptocurrencies pegged to traditional currencies—have grown rapidly in use, not only for crypto trading but also for mainstream payments and cross-border settlements. While the global stablecoin market is worth nearly $300 billion, euro-denominated stablecoins account for just $620 million, according to recent Bank of Italy figures. Dollar-pegged tokens dominate the market.
“The initiative will provide a real European alternative to the U.S.-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments,” the banks said in a joint statement.
Still, the project faces skepticism from the European Central Bank (ECB). ECB President Christine Lagarde has warned that privately issued stablecoins could pose risks to monetary policy and financial stability, urging lawmakers instead to support a digital euro backed by the central bank. Some commercial banks, however, worry that such a move would drain deposits from their institutions.
In addition to ING and UniCredit, participants include Banca Sella, KBC, DekaBank, Danske Bank, SEB, CaixaBank, and Raiffeisen Bank International. A CEO will be appointed soon, and the consortium signaled that other banks may join.
A recent Deutsche Bank report underscored the urgency, noting that emerging economies are increasingly adopting dollar-backed stablecoins in place of local deposits. “This has created a global monetary dilemma: countries should adopt stablecoins or risk being left behind. Europe is under particular pressure,” the report said.
Some European efforts have struggled to gain traction. Societe Generale’s crypto unit SG-FORGE launched a euro stablecoin in 2023, but it has seen limited adoption, with just €56.2 million in circulation. Its U.S.-dollar stablecoin has even less uptake at $32.25 million.
Meanwhile, U.S. banks like Bank of America and Citigroup are exploring stablecoins, but most of the market remains dominated by non-bank players such as Tether and Circle.
