European banks secretly working on euro stablecoin. ING and UniCredit lead MiCA project

European banks secretly working on euro stablecoin. ING and UniCredit lead MiCA project

Dutch ING and Italian UniCredit are among nine banks working on a euro stablecoin compatible with MiCA (the European Cryptocurrency Regulation). The goal is to launch the payment instrument in the second half of 2026 and issue it in full compliance with the European framework for crypto-asset markets. The stablecoin is intended to be pegged to the euro and serve as a trusted European payment standard in the digital ecosystem.

Who is involved

The initiative joins ING and UniCredit with other major European banks, including CaixaBank (Spain), Danske Bank (Denmark), Raiffeisen Bank International (Austria), KBC (Belgium), SEB (Sweden), DekaBank (Germany) and Banca Sella (Italy). Together, a new legal entity based in the Netherlands has been created to oversee the development and management of the stablecoin. Other members of the banking sector may continue to join the project.

What will the stablecoin do?

According to the announcement, the euro-stablecoin being developed under MiCA is intended to provide fast and cheap payments with real-time settlement and enable seamless access to cross-border payments within the EU. Banks promise that it will be possible to make programmable payments and use it in the areas of supply chain management and settlement of digital assets, which can include securities and cryptocurrencies.

Why they are doing it

The initiative aims to strengthen European financial autonomy and offer a local alternative to the dominant US stablecoins. The announcement said that the project is in line with Europe’s ambitions to strengthen digital payments denominated in euros and build an EU-wide payments infrastructure. They also stressed that they will adhere to uniform standards to enable smooth barriers to cross-border payments.

What analysts and budget say

The stablecoin is expected to be prepared in line with MiCA and to be operational in the second half of 2026. In the broader context of the European central bank digital currency (CBDC), analysts point to a slower pace of approval and implementation, which could mean that the digital euro will not become a reality until 2029. Some observers speculate that the stablecoin could also function as a “backdoor CBDC”, but the CBDC would remain solely in the hands of central banks.

Impact on the future

The joint project of European banks is based on the belief that digital payments and stable currencies play a key role in modernizing the financial ecosystem. If all goes according to plan, the stablecoin will support faster and cheaper cross-border payments in the eurozone and strengthen cooperation between banks, regulators and technology providers in the EU.

What’s next

The banking consortium says that other banks and institutions that want to collaborate on the development and operation of the euro stablecoin can continue to join the project. In the future, further clarification of the technical parameters, licenses and regulatory framework within MiCA is expected, which will determine how the stablecoin will work in everyday payment operations.

A note on the wider context

In connection with the ongoing debate on central bank digital currencies and their possible impacts on the financial market, different opinions are emerging on whether and when the digital euro will actually arrive in practice. European banks are thus continuing their intensive work on stablecoins, which could strengthen the European payment infrastructure and move the EU closer to economic and technological self-sufficiency in the digital age.

*This is not an investment recommendation.

The Coingarage Team