Euro-Pegged Stablecoin Planned for 2026: Europe Aims to Challenge U.S. Supremacy

By the latter half of 2026, a group of European banks plans to introduce a stablecoin backed by the euro. Nine leading banks—including

, UniCredit, Danske Bank, and Raiffeisen Bank International—have revealed a joint venture that operates within the European Union’s Markets in Crypto-Assets Regulation (MiCA) guidelines. According to a collective statement released by the banks on September 25, 2025, this initiative seeks to create a “genuine European option” in a stablecoin market currently led by the U.S. The stablecoin will utilize blockchain technology to provide fast, low-cost international payments and settlements, functioning around the clock and supporting programmable payment options. The project also aims to enhance supply chain processes and digital asset settlements, including both securities and cryptocurrencies.

The group highlights the importance of payment independence, aiming to decrease Europe’s dependence on stablecoins tied to the U.S. dollar. The stablecoin will be managed by a newly formed company based in the Netherlands, which will apply for an “e-money institution” license from the Dutch Central Bank. Floris Lugt, who leads Digital Assets at ING and represents the initiative, emphasized that blockchain’s programmability and real-time multi-currency settlement can boost both efficiency and transparency. The project welcomes additional banks to join the founding nine, with the goal of establishing a unified digital payments standard across the industry.

Research from Kaiko in 2024 indicates that demand for euro-backed stablecoins is on the rise in Europe. Although crypto trading volumes in Europe have traditionally trailed those in the U.S. and Asia-Pacific, transactions involving euro-backed stablecoins have steadily increased since early 2025. Kaiko Research analyst Anastasia Melachrinos observed that U.S. dollar-backed stablecoins such as

could see advantages from the EU’s changing regulatory landscape, but the new euro-pegged stablecoin is poised to compete directly with American counterparts.

The consortium’s stablecoin will focus on strict MiCA compliance, ensuring it meets regulatory standards throughout the EU. Its technical framework is designed to resolve shortcomings in existing payment networks, providing continuous access and minimizing barriers in cross-border transactions. By establishing itself as a reliable European payment solution, the stablecoin could transform digital finance infrastructure, especially for securities and crypto settlements.

Although the project is targeting a launch in the second half of 2026, its ultimate success will depend on factors like regulatory approval and user adoption. The group’s emphasis on scalability, interoperability, and adherence to regulations positions it to capture a significant share of the expanding global stablecoin sector. As more European banks embrace digital assets, this stablecoin could become a foundational element in the EU’s digital payments landscape.

Source: [1] Launch Of Euro-Backed Stablecoin In H2 2026? Nine European Banks Unite (https://finance.yahoo.com/news/launch-euro-backed-stablecoin-h2-133251557.html)