European Banks Introduce Stablecoin to Challenge US Dollar Supremacy
- Nine European banks launch a MiCA-regulated euro stablecoin to challenge U.S. dollar dominance in digital payments. - The consortium, including ING and Raiffeisen, will use blockchain for instant, low-cost cross-border transactions under 100% reserve requirements. - Aiming to strengthen euro's digital role, the project aligns with ECB initiatives and seeks 30% EU market share by 2025 through regulated innovation.
Nine major European banks have revealed their intention to introduce a euro-based stablecoin that will be regulated under the European Union’s Markets in Crypto-Assets (MiCA) legislation, representing a notable advancement toward a regulated digital payments landscape in Europe. The group features
This project is designed to offer a European alternative to the U.S.-led stablecoin sector, aiming to boost the region’s independence in payment systems. Utilizing blockchain, the stablecoin will enable rapid, low-fee transactions and provide round-the-clock cross-border settlement. It will also support programmable payments, enhance supply chain processes, and facilitate digital asset settlements for both securities and cryptocurrencies Nine major European banks join forces to issue stablecoin [ 2 ]. By combining their resources and adopting a collaborative approach, the banks hope to overcome issues of scalability and liquidity, while ensuring strict adherence to MiCA’s compliance standards 9 European Banks Team Up to Launch MiCA-Compliant Euro Stablecoin [ 3 ].
Ensuring regulatory compliance is a cornerstone of this initiative. The stablecoin will function under MiCA regulations, which require full reserve backing, transparency, and robust consumer protections. The new company will maintain reserves equal to the stablecoin’s total supply, meeting MiCA’s 100% reserve mandate Big European banks form company to launch euro stablecoin [ 4 ]. This effort supports the EU’s broader strategy to create a comprehensive legal structure for crypto assets, which became effective in December 2024 Stablecoins Regulations Under MiCA Statistics 2025 • CoinLaw [ 5 ].
The banks have highlighted the strategic significance of this venture. Johann Strobl, CEO of Raiffeisen Bank International, described stablecoins as essential to their digital asset plans, enabling quicker and more affordable transactions. Floris Lugt of ING pointed to the benefits of blockchain’s programmability and continuous settlement, emphasizing the necessity for industry-wide cooperation Top MiCA-Compliant Stablecoins: USDT Alternatives for European Users [ 6 ]. The initiative also demonstrates Europe’s goal to lessen its dependence on stablecoins tied to the U.S. dollar, which currently account for 99.8% of the worldwide market How Europe’s Stablecoin Adoption Is Growing USD Monopoly [ 7 ].
The group is open to welcoming more banks, and a CEO appointment is expected soon. Each participating bank will provide additional services such as stablecoin wallets and custody solutions to help grow the ecosystem. This move is part of a wider trend of increasing euro-backed stablecoins, spurred by MiCA’s regulatory certainty and the European Central Bank’s (ECB) drive for monetary independence From hype to hazard: what stablecoins mean for Europe [ 8 ]. Experts predict that euro-backed stablecoins could reach a 30% share of the EU market by 2025, rising from 12% in 2023, as more institutions seek out regulated options Stablecoins Regulations Under MiCA Statistics 2025 • CoinLaw [ 9 ].
The introduction of this stablecoin highlights Europe’s proactive approach to the evolving digital finance landscape. By developing a euro-denominated, MiCA-compliant digital payment tool, the consortium aims to reinforce the euro’s influence in digital finance and reduce risks linked to U.S. dollar dominance. The project supports the ECB’s broader digital euro strategy and complements ongoing efforts to modernize international payment systems Nine European Banks Launch Euro-Backed Stablecoin to Challenge US Dollar Dominance [ 10 ]. As the EU continues to enhance its regulatory environment, the success of this stablecoin could establish Europe as a frontrunner in blockchain-driven financial innovation From hype to hazard: what stablecoins mean for Europe [ 11 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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