Nine EU Banks Launch Euro Stablecoin Under MiCA—A Direct Shot at Dollar Dominance

Europe’s largest banks are moving to challenge the dominance of dollar-backed stablecoins with a new euro token designed to comply fully with the EU’s regulatory framework.

Alexandra Chen

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Nine EU Banks Launch Euro Stablecoin Under MiCA—A Direct Shot at Dollar Dominance

A nine-bank consortium including CaixaBank, ING, UniCredit, DekaBank, KBC, Danske Bank, SEB, Banca Sella, and Raiffeisen Bank International has formed a company in Amsterdam to issue a MiCA-compliant euro stablecoin. The project is targeting a 2026 launch, subject to licensing as an e-money token in the Netherlands.

The group argues that a regulated euro stablecoin can reduce friction in digital payments and ensure European commerce runs on European rails. Dollar-denominated tokens such as USDT and USDC account for more than 80 percent of global stablecoin use, while euro tokens make up less than one percent.

Regulatory Design

The new stablecoin will be structured under the EU’s Markets in Crypto-Assets framework as an e-money token. This classification obliges issuers to maintain reserves, redeem tokens at par value, and comply with ongoing prudential oversight. Unlike offshore dollar tokens, supervisors would have the authority to enforce redemption rights and audit reserve holdings.

MiCA’s provisions for stablecoins, which came into force in mid-2024, removed much of the uncertainty that had previously deterred banks from launching digital assets. With a single license passported across the bloc, issuers can distribute and list tokens throughout the EU.

Strategic Aims

For the banks involved, the stablecoin is both a commercial and political project. It is intended to provide a credible alternative to dollar-backed coins, which dominate trading pairs on European exchanges. Euro liquidity in crypto markets has remained shallow, forcing traders to route through USD pairs and increasing costs for merchants and corporates.

By offering a bank-backed, fully supervised euro token, the consortium aims to change settlement practices in both traditional and decentralized finance. Potential use cases include faster merchant settlement, euro-denominated lending pools in DeFi, and more efficient cross-border payments within the eurozone.

Impact on Dollar Coins

The introduction of a regulated euro stablecoin will not displace USDT or USDC globally, but it could alter the balance inside the eurozone. Analysts expect exchanges to add euro pairs once liquidity providers support the token. If volumes build, euro stablecoins could climb from today’s negligible market share to several percentage points within two years.

Market observers caution that execution risks remain. Coordinating technology between nine banks, integrating with exchanges, and ensuring competitive pricing will be critical. Issuers of e-money tokens must also bear higher reserve and compliance costs, which could limit incentives.

The Next 12–24 Months

The project is scheduled to go live in 2026, making the coming two years a test of regulatory approval, technical readiness, and market appetite. If the rollout succeeds, euro-denominated trading and settlement could become a fixture on European exchanges and payment rails, reducing reliance on the dollar.

The broader impact will be closely watched by policymakers. For the EU, the stablecoin is as much about financial sovereignty as it is about innovation, signaling a shift toward keeping digital value anchored in the euro.

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Updated: 9/26/2025
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