A group of major European banks, including ING and UniCredit, are collaborating to launch a euro-pegged stablecoin in compliance with Europe’s MiCA regulation. The stablecoin is set to be issued in the second half of 2026, aiming to be a trusted European payment standard.

Nine banks from eight EU member states, such as CaixaBank and Danske Bank, are involved in the stablecoin project. A new company headquartered in the Netherlands has been established to oversee the stablecoin’s development and management.

The euro stablecoin is expected to offer near-instant, low-cost payments and settlements, allowing 24/7 access to cross-border payments. It also aims to enhance supply chain management and digital asset settlements, catering to various assets from securities to cryptocurrencies.

European Central Bank Executive Board member Piero Cipollone estimates that the EU’s digital euro could become a reality in 2029. Some commentators view the new stablecoin launch as potentially impacting the digital euro’s development, while others speculate on the stablecoin’s role as a “backdoor CBDC.”

Read more at Cointelegraph: UniCredit, ING Among 9 Banks Launching Euro Stablecoin