European financial institutions leverage MiCA to position the euro at the forefront of digital currency innovation

ING, UniCredit, and several other European financial institutions are gearing up to introduce euro-backed stablecoins that comply with MiCA regulations by late 2026, marking a significant development in Europe’s digital asset sector ING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot [ 1 ]. Dutch bank

working alongside a group of partner banks, is creating a stablecoin pegged to the euro within the regulatory boundaries set by the European Union’s Markets in Crypto-Assets (MiCA) framework ING Moves to Launch Euro Stablecoin in Compliance with MiCA Regulations [ 2 ]. This project is part of a wider movement among European banks to meet the rising interest in regulated digital assets, as the EU’s comprehensive rules reshape the stablecoin sector Dutch Banking Giant ING Reportedly Developing MiCA-Compliant Stablecoin [ 3 ].

MiCA, which took effect in December 2024, requires stablecoin providers to secure licenses, hold full reserves in European banks, and comply with strict transparency standards European Stablecoin Regulations: 2025 Update [ 4 ]. These regulations have already prompted major U.S. firms like

to withdraw from the euro stablecoin market, opening the door for regulated alternatives such as Circle’s EURC Dutch Bank ING Said to Be Working on a New Stablecoin [ 5 ]. ING’s initiative, which is still pending approval from regulators and its board, highlights the careful steps banks are taking to ensure MiCA compliance ING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot [ 1 ]. The new stablecoin would compete with Société Générale of France, which has already issued a euro-backed token through its digital arm, SG FORGE ING Moves to Launch Euro Stablecoin in Compliance with MiCA Regulations [ 2 ].

The consortium approach demonstrates the collaborative efforts behind MiCA-compliant projects. ING’s alliance with other banks illustrates the regulatory and operational challenges of forming a joint venture under the new rules ING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot [ 1 ]. Progress has been gradual, as participants work through board approvals and compliance requirements Dutch Banking Giant ING Reportedly Developing MiCA-Compliant Stablecoin [ 3 ]. Nevertheless, the clarity provided by MiCA has encouraged innovation, with UniCredit and other major institutions reportedly pursuing similar initiatives Stablecoin Regulations: U.S. vs EU Strategies [ 6 ]. Collectively, these efforts are intended to fill the gap left by non-compliant stablecoins and establish European banks as central players in the digital euro landscape.

The euro stablecoin sector is gaining traction as MiCA boosts both consumer confidence and institutional involvement. According to JPMorgan analysts, regulated products like EURC have outperformed less transparent options such as Tether, thanks to their compliance with reserve and disclosure rules Dutch Bank ING Said to Be Working on a New Stablecoin [ 5 ]. The EU’s regulatory drive has also led to new infrastructure, including Circle’s Circle Payments Network (CPN), which supports instant cross-border transactions using EURC and USDC ING Drives Euro Stablecoin Launch as MiCA Spurs Banking Pivot [ 1 ]. These developments are in line with the European Central Bank’s (ECB) broader objective to promote digital euro adoption, even as the official rollout faces delays.

Despite these advances, challenges persist, especially in balancing innovation with regulatory demands. While MiCA has simplified oversight, obtaining licenses and maintaining reserves remains a demanding process European Stablecoin Regulations: 2025 Update [ 4 ]. Many smaller issuers and crypto companies have exited the EU, with TRM Labs noting that only 17 firms had received MiCA authorization by mid-2025 Dutch Banking Giant ING Reportedly Developing MiCA-Compliant Stablecoin [ 3 ]. However, as established banks like

and UniCredit enter the market, they are expected to bring greater stability, foster competition, and encourage adoption. The ECB’s concerns about the prevalence of U.S.-dollar stablecoins further highlight the need for euro-based alternatives Stablecoin Regulation Around The World: 2025 Overview [ 7 ].

Looking forward, the euro stablecoin market is expected to expand rapidly, with global supply projected to hit $2 trillion by 2028. European banks are positioning themselves to capture a significant portion of this growth by leveraging MiCA’s regulatory structure U.S. vs. EU Stablecoin Regulation: How the Revised STABLE Act Stacks Up [ 8 ]. The ECB’s digital euro project, though delayed, is still seen as a long-term complement to private stablecoin ventures. As regulations evolve, the EU’s focus on financial stability and consumer protection stands in contrast to the U.S.’s more innovation-driven GENIUS Act Stablecoin Regulations: U.S. vs. EU (2025) [ 9 ]. This difference underscores the euro’s strategic role in shaping Europe’s digital financial landscape.

The initiatives by ING and UniCredit showcase the transformative impact of MiCA. By aligning with the EU’s regulatory goals, these banks are not only tackling compliance issues but also helping to define the future of digital finance in Europe. As the latter half of 2026 nears, the success of their stablecoins could pave the way for wider adoption, strengthening the euro’s position in the evolving global payments system.