Europe is taking a strategic step to solidify its financial autonomy. A consortium formed by nine major banks is working on a new Euro-backed digital asset that combines the speed of blockchain technology with the security of banking.
Europe’s leading banks are taking a significant step to end the dominance of US-based firms in the global digital currency market. A consortium of nine major banks, including names like ING, Banca Sella, KBC, and Danske Bank, has joined forces to issue a new Euro-backed stablecoin.
This new digital asset, which is scheduled for launch in late 2026, will be fully compliant with the European Union’s recently implemented “Markets in Crypto-Assets Regulation” (MiCA). MiCA mandates that stablecoins must be supported one-to-one by reserves and aims to increase security in this field by prohibiting algorithmic stablecoins. These regulations will ensure that the new Euro-backed token is completely auditable and secure.
This move is considered a counter-play against the dominance of US-based stablecoins like Tether’s USDT and Circle’s USDC in the European digital payment market. The new token, which will be supervised by the Dutch Central Bank, aims to strengthen Europe’s financial autonomy. Floris Lugt, Head of Digital Assets at ING, states that this project is critical for digital payments.
New Opportunities for Businesses and Consumers
This stablecoin will be fundamentally powered by blockchain technology and will offer low-cost, instant transfer capabilities for financial transactions. For users in Europe, 24/7 accessibility, seamless cross-border transfers, and automated, programmable transactions (such as supplier payments or salaries) will become possible. Furthermore, the banks in the consortium will offer additional benefits to users who hold this new token, such as secure digital wallets and custody services.
The founders of the initiative plan to appoint a CEO to lead the project and to encourage the participation of more banks. While the consortium continues its work to obtain full approval from European regulators, developments in the field of digital currencies in Europe may accelerate.
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