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The launch of a European banking stablecoin under MiCAR marks a milestone for the continent’s digital payments landscape. Nine major European banks — ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International — have joined forces to create the first pan-European, euro-pegged stablecoin fully regulated under the EU Markets in Crypto-Assets Regulation (MiCAR).
Designed to combine blockchain efficiency with financial compliance, this initiative aims to deliver instant, secure, and transparent digital payments while reinforcing Europe’s strategic autonomy and competitiveness in the global financial ecosystem.
Expected to launch in the second half of 2026, this project represents the first pan-European initiative promoted directly by credit institutions. It seeks to introduce a regulated, scalable digital payment instrument capable of competing with U.S. initiatives and strengthening the European Union’s technological and regulatory sovereignty in the payments sector.
The European banking stablecoin will be issued by a Netherlands-based company that will apply for authorization as an Electronic Money Institution (“EMI”) under the supervision of De Nederlandsche Bank (“DNB”). The model combines compliance with MiCAR, the Payment Services Directive (PSD2), and the Capital Requirements Regulation (CRR), leveraging the efficiency of distributed ledger technology (DLT) while maintaining the prudential safeguards of traditional finance.
The infrastructure promises instant, low-cost, 24/7 transactions with potential applications including cross-border payments, digital asset monitoring, and greater supply-chain traceability.
A European Banking Stablecoin between MiCAR and Digital Sovereignty
This European banking stablecoin marks a decisive step in the evolution of regulated digital payments. Unlike earlier experiments driven by unregulated tech players, it has been designed from the outset to comply with MiCAR and PSD2, ensuring strong consumer protection, transparency, and capital adequacy.
Establishing the issuer in the Netherlands under DNB supervision sends a clear signal: the new stablecoin will be treated from its inception as a regulated digital payment instrument, subject to the same prudential and governance standards as traditional financial products.
Beyond compliance, the initiative represents a strategic effort to consolidate Europe’s digital sovereignty. By offering a euro-denominated alternative to U.S.-backed stablecoins, the consortium aims to reduce Europe’s dependence on extra-EU payment infrastructures and reinforce its competitive position in global finance.
The project complements, rather than competes with, the digital euro initiative of the European Central Bank (ECB). While the ECB’s project remains in development, the European banking stablecoin under MiCAR may reach the market earlier as a private, regulated solution aligned with EU law.
Symbolically, it signals that blockchain technology has matured: DLT is no longer an experimental tool but an integral part of Europe’s regulated financial architecture. This shift defines a new paradigm of regulated digital payments built on trust, compliance, and technological innovation.
Opportunities and Risks in the Digital Payments Market
The emergence of a European banking stablecoin raises strategic questions about competition, interoperability, and consumer adoption in the evolving digital payments ecosystem.
For the first time, Europe may face a complex landscape of coexisting instruments — stablecoins under MiCAR, instant transfers under the Instant Payments Regulation (IPR), and the future digital euro — each governed by different rules. While this diversity may encourage innovation, it also risks fragmentation and inefficiencies.
Competition could drive lower costs and faster settlement, yet fragmented networks may limit interoperability. Unless carefully coordinated, this diversity could dilute the harmonization goals of MiCAR, creating parallel markets with limited connectivity.
Instant transfers already enable real-time euro payments through IPR without new technologies. To gain a competitive edge, the European banking stablecoin must offer features such as programmability, smart-contract automation, or global interoperability beyond SEPA boundaries. Otherwise, adoption could remain limited to niche use cases.
Public trust will be crucial. Despite industry momentum, awareness of MiCAR-regulated stablecoins remains low among both consumers and businesses. The Bank of Italy’s Communication on EMTs underscores that without financial education and user confidence, adoption may lag behind supply. Yet, the direct involvement of regulated banks can be a decisive advantage: trust in traditional institutions may turn the stablecoin from a technological experiment into a widely used digital payment method.
MiCAR Compliance and Regulatory Framework
The distinctive feature of this European banking stablecoin lies in its integration within the EU’s robust regulatory architecture rather than in its underlying technology.
Participating banks will need to comply with both MiCAR and PSD2, assuming prudential and governance obligations typical of crypto-asset service providers (CASPs), payment institutions, and EMIs. These obligations will include maintaining adequate own funds, insurance coverage, and transparent governance structures consistent with traditional banking standards.
Corporate officers will be required to meet stringent requirements of integrity, independence, and time commitment. Operationally, digital payments made through the stablecoin will need to apply strong customer authentication (SCA) and periodic fraud reporting, mirroring the protections in place for conventional payment systems.
While open-banking rules will not apply — given the decentralized nature of DLT infrastructures — transparency and user safeguards will remain uncompromised. The outcome is a framework that places the European banking stablecoin under MiCAR on equal footing with traditional payment instruments in terms of security and accountability.
A New Standard for Europe’s Digital Payment Future
In conclusion, the European banking stablecoin under MiCAR represents far more than a technological innovation. It embodies Europe’s commitment to merging digital transformation with regulatory discipline, creating a new model of regulated digital payments grounded in trust, transparency, and compliance.
By embedding blockchain within a clear legal framework, the EU is shaping a financial ecosystem where innovation and prudence coexist. Those institutions that prepare early for MiCAR compliance will not only meet regulatory expectations but also position themselves as leaders in defining a new European standard for secure, efficient, and transparent digital payments.
On a similar topic, you can read the article “US Genius Act vs. EU MiCAR: Is Deregulation the Smart Move in the Global Stablecoin Race?“.
Authors: Andrea Pantaleo and Giulio Napolitano