Nine major European banks have formed a consortium to launch a MiCAR-compliant euro-based stablecoin in the second half of next year.
ING, UniCredit, & Other European Banks Are Coming Together For Stablecoin
As announced in a press release by Italian banking giant UniCredit, the bank is joining forces with eight other major European institutions to launch a stablecoin pegged to the euro.
“This digital payment instrument, leveraging blockchain technology, aims to become a trusted European payment standard in the digital ecosystem,” read the press release.
The stablecoin will have compliance with the European Union’s Markets in Crypto-Assets Regulation (MiCAR), the bloc’s comprehensive framework on cryptocurrencies. MiCAR covers a range of areas, like issuance and custody of digital assets, as well as the operation of platforms related to them.
The full list of banks that have come together to form the consortium for the euro-denominated token includes: ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International.
All of these are major banking players, but two are perhaps particularly prominent: ING and UniCredit. ING is a Dutch multinational bank that’s designated as a Global Systemically Important Bank (G-SIB) by the Financial Stability Board (FSB). G-SIBs are considered to be institutions so ingrained into the world financial order that any disruptions related to them can have widespread economic consequences. Italy’s UniCredit was also included in this category until 2023, when FSB removed it from the list.
The nine banks have formed a new company in the Netherlands, planning to get approval from the Dutch Central Bank as an e-money institution. The press release noted that the consortium is welcoming more banks to join them. The stablecoin, which is currently slated for issuance in the second half of 2026, will be positioned as a real European alternative to the currently US-dominated market.
“At UniCredit, we believe in the importance of a stronger Europe and in the power of constructive dialogue and collaboration,” said Fiona Melrose, Head of Group Strategy and ESG at UniCredit. “By joining this consortium of leading European banks, we are contributing to fill the need for a trusted, regulated solution for on-chain payments and settlement.”
The consortium also intends to appoint a Chief Executive Officer (CEO) in the near future, subject to regulatory approval, to lead the new entity in the Netherlands.
Meanwhile, in the US, stablecoins have been seeing regulatory momentum lately. Just this Tuesday, the Commodity Futures Trading Commission (CFTC) launched an initiative to explore their use as collateral in derivatives markets, a move that could further integrate them into mainstream finance.
Bitcoin Price
Despite nearly making a recovery toward $114,000 on Wednesday, Bitcoin has taken another hit as its price has slipped down to $111,200.
The trend in the BTC price over the last five days | Source: BTCUSDT on TradingView
This change of direction in the cryptocurrency has brought with it liquidations of over $76 million in the derivatives market.
The 24-hour liquidation heatmap for the digital assets sector | Source: CoinGlass