European Banks Unite to Launch Euro Stablecoin, Aiming to Rival Dollar Dominance
Consortium Formation and Goals
In a bold move to bolster Europe's financial autonomy and challenge the dominance of US dollar-backed digital currencies, nine prominent European banks, including ING [3], UniCredit [4], CaixaBank [5], and Danske Bank [6], announced the formation of a consortium to develop a euro-denominated stablecoin [1]. The initiative, revealed on Thursday, September 25, 2025, will operate as a new company based in Amsterdam, with plans to issue its first tokens in the second half of 2026. The project will adhere to the European Union’s Markets in Crypto Assets (MiCA) regulation and operate under the supervision of the Dutch Central Bank [2].
Participating Banks
The consortium includes nine leading European banks, with four named in the announcement: ING (Netherlands), UniCredit (Italy), CaixaBank (Spain), and Danske Bank (Denmark). These institutions are among Europe’s most significant financial players, each contributing substantial expertise and market influence to the stablecoin initiative. Below is an overview of the named banks, highlighting their size, importance, revenues, and history:
ING: Headquartered in Amsterdam, ING Group is one of the Netherlands’ largest financial institutions, with a global presence in over 40 countries. As of recent data, ING manages assets worth approximately €1 trillion and serves over 38 million customers. In 2023, ING reported net revenues of around €22.4 billion. Founded in 1991 through the merger of Nationale-Nederlanden and NMB Postbank, ING has grown into a leader in digital banking, making it a key player in innovative financial solutions like the stablecoin project.
UniCredit: Based in Milan, UniCredit is Italy’s largest bank by assets and one of Europe’s systemically important financial institutions. It operates across 13 countries, primarily in Western and Central Europe, with total assets exceeding €850 billion as of 2023. UniCredit’s net revenues for 2023 were approximately €23.2 billion. Established in 1998 through the merger of several Italian banks, UniCredit has a rich history dating back to the 15th century via its predecessor institutions, positioning it as a cornerstone of European finance.
CaixaBank: Spain’s leading retail bank, CaixaBank is headquartered in Barcelona and Valencia. It manages assets of around €600 billion and serves over 20 million customers, primarily in Spain and Portugal. In 2023, CaixaBank reported net revenues of about €14.1 billion. Formed in 2011 through the reorganization of “la Caixa” savings bank, its roots trace back to 1904, making it a longstanding pillar of Spain’s financial system with a strong focus on retail and digital banking.
Danske Bank: Based in Copenhagen, Danske Bank is Denmark’s largest financial institution and a major player in the Nordic region, with assets of approximately €470 billion. It serves around 3.2 million customers across retail, corporate, and institutional banking. In 2023, Danske Bank’s net revenues were around €7.3 billion. Founded in 1871, it is one of Scandinavia’s oldest banks, known for its robust digital banking platforms and regional influence.
The remaining five banks in the consortium have not been publicly named in the announcement, but the group has indicated that additional banks may join, potentially increasing the consortium’s scale and influence. The named banks alone represent a formidable alliance, with combined assets exceeding €2.9 trillion and a strong track record in retail, corporate, and digital banking, positioning them to drive the adoption of the euro stablecoin.
Features and Benefits of the Stablecoin
The consortium’s stablecoin aims to facilitate near-instant transaction settlements, reduce cross-border payment costs, and enable programmable financial services. This development comes as US financial institutions, supported by recent federal stablecoin legislation, prepare to launch their own dollar-backed tokens, raising concerns in Europe about the growing US influence in global digital payments.
Market Context and Challenges
Currently, euro-based stablecoins represent a mere fraction of the market, with less than €1 billion in circulation compared to approximately $300 billion for dollar-linked tokens, according to data from the Bank of Italy. This initiative is not the first attempt to establish a euro stablecoin. In 2023, Société Générale launched a similar token, which struggled to gain traction. The new consortium, however, is banking on its collective strength and broader banking participation to achieve greater market adoption [7].
Leadership and Expansion Plans
A CEO for the Amsterdam-based company is expected to be appointed soon, and the group has indicated that additional banks may join the effort, further expanding its reach.
ECB Concerns and Industry Response
The move has sparked debate within Europe’s financial sector. European Central Bank (ECB) President Christine Lagarde has repeatedly expressed concerns that privately issued stablecoins could undermine monetary policy and has advocated for a digital euro issued by the ECB. However, commercial banks have resisted this idea, citing fears that a central bank-backed digital currency could lead to deposit flight as customers move funds to ECB-backed digital wallets.
Strategic Importance and Future Outlook
The consortium’s euro stablecoin is positioned as a strategic response to these challenges, aiming to strengthen Europe’s role in the global digital economy while maintaining compliance with stringent regulatory standards. By leveraging blockchain technology, the token promises to streamline financial operations and foster innovation in cross-border payments and programmable finance.
Conclusion
As the consortium prepares to roll out its stablecoin, the initiative is poised to reshape Europe’s digital payments landscape and could set the stage for a broader shift in how stablecoins are integrated into global financial systems. With the backing of major banks and a clear regulatory framework, this euro stablecoin may mark a significant step toward reducing reliance on dollar-based digital currencies.