Euro Banks Plan MiCAR Stablecoin by 2026

Nine of Europe’s leading lenders have formed a consortium to issue a euro-denominated stablecoin under the EU’s Markets in Crypto-Assets Regulation (MiCAR), aiming to strengthen the region’s financial sovereignty and provide a European alternative to dollar-dominated stablecoins.

Who’s Involved

The banking group includes ING, UniCredit, CaixaBank, KBC, Danske Bank, DekaBank, Banca Sella, SEB, and Raiffeisen Bank International. Together, they have created a Dutch-based company that plans to apply for an e-money license, to be supervised by the Dutch Central Bank. Subject to regulatory approvals, a chief executive will be appointed in due course.

Launch Timeline and Licensing

• Planned issuance: second half of 2026, subject to regulatory approval
• Regulatory framework: MiCAR-compliant e-money token
• Supervisor: Dutch Central Bank (licensing and oversight)
• Consortium role: issuance, operations, and ecosystem development

What the Stablecoin Will Do

The euro stablecoin is designed for instant, low-cost transactions with 24/7 availability, enabling real-time cross-border payments and programmable settlement. The token is also intended to support use cases in digital assets, supply chain and trade finance workflows, and automated corporate treasury operations. Participating banks may offer wallets and custody services, integrating the token into consumer and enterprise banking channels.

Why It Matters: Sovereignty and Competition

Dollar-based stablecoins currently dominate the global market, leaving euro-denominated alternatives relatively small and fragmented. EU policymakers have warned that unchecked reliance on non-euro tokens could undermine monetary sovereignty and financial stability. A bank-grade, MiCAR-compliant euro stablecoin seeks to counterbalance this trend by providing trusted, regulated on-chain euros.

At the same time, competition inside Europe is intensifying. Société Générale’s Forge unit has already launched a euro stablecoin on public blockchain infrastructure and recently introduced a dollar-pegged token listed on a European exchange. The new consortium adds scale, mainstream distribution, and interoperability potential across multiple markets.

State of the Euro Stablecoin Market

Despite growing interest, euro stablecoins remain a small segment compared to dollar tokens. Market estimates suggest the category’s total capitalization is still below €350 million, with leading euro-pegged tokens splitting share among a few issuers. This fragmentation has limited liquidity and adoption, particularly for wholesale settlement and cross-border payment corridors. A coordinated, bank-led issuance could improve standardization, liquidity, and trust, if it gains regulatory approval and achieves sufficient network effects.

Policy Tensions and MiCAR Gaps

MiCAR provides the first comprehensive EU framework for crypto-assets, but several open questions remain, including operational rules for cross-border issuance, supervisory coordination, and treatment of reserves across jurisdictions. Some European officials have cautioned that parts of the framework may be too permissive, while others consider targeted adjustments to promote innovation and competitiveness. These differing views underscore a broader debate over how to balance consumer protection and financial stability with the EU’s digital finance ambitions.

Industry experts argue that clarity on passporting, reserve management, disclosure, and interoperability is essential for large-scale adoption. Without consistent cross-border rules, banks and fintechs may face duplicative compliance burdens, slowing rollout and limiting use cases that require pan-European reach.

ECB Perspective and the Digital Euro Context

European Central Bank officials have emphasized the strategic importance of a robust euro presence in digital transactions. They warn that if euro-pegged options remain weak while non-EU stablecoins scale, the euro’s role in global payments could erode. At the same time, they see an opportunity: well-designed, regulated solutions could enhance monetary sovereignty, strengthen financial stability, and complement the ongoing digital euro project.

ECB leadership has called for strict oversight of non-EU issuers operating in Europe, aligning the conversation with the broader agenda to modernize European payments infrastructure. Any bank-issued euro stablecoin will be expected to meet high standards on consumer protection, reserve quality, transparency, and operational resilience.

What to Watch Next

• Licensing milestones: application filing, regulatory feedback, and authorization timelines
• Technical design: programmability features, blockchain networks supported, and interoperability with existing payment rails
• Reserve model: composition, custody, auditing, and transparency practices
• Bank distribution: wallet offerings, custody integration, and APIs for corporate and fintech partners
• Policy developments: final MiCAR technical standards, cross-border rules, and oversight of non-EU stablecoin issuers

If the consortium clears regulatory hurdles and delivers a secure, liquid, and widely accessible token, it could catalyze a new phase for euro-denominated digital money—supporting instant settlement, upgrading cross-border payments, and reinforcing Europe’s monetary sovereignty in an increasingly tokenized economy.