Nine European Banks to Launch MiCA Euro Stablecoin in 2026

Core Insights - A consortium of nine major European banks has been formed to issue a euro-denominated stablecoin, aiming to create a European alternative to US dollar stablecoins, which currently dominate over 99% of the global market [1][4]. Group 1: Consortium Formation and Regulatory Context - The consortium includes banks such as ING, UniCredit, and CaixaBank, and will operate under the EU's Markets in Crypto-Assets Regulation (MiCAR) [1]. - A Dutch-based company will be established to apply for an e-money license supervised by the Dutch Central Bank, with the stablecoin expected to be issued in the second half of 2026, pending regulatory approval [2]. Group 2: Features and Market Position - The stablecoin is designed for instant, low-cost transactions, 24/7 cross-border payments, programmable settlement, and applications in digital assets and supply chain management, with potential wallet and custody services offered by banks [3]. - The euro stablecoin market is currently fragmented, with EURC controlling 47%, STASIS EURO 26%, and CoinVertible 9%, and the combined capitalization is below €350 million, indicating its small scale compared to dollar-based tokens [5]. Group 3: Strategic Implications and Expert Opinions - The European Central Bank has expressed concerns that MiCA may be too lenient, and EU officials warn that unchecked US tokens could undermine euro stability [4][6]. - Experts highlight the need for stricter oversight of non-EU issuers and emphasize that digital payments are crucial for euro-denominated financial infrastructure, calling for industry-wide standards [6][7].