Nine European banks have teamed up to launch a euro-denominated digital stablecoin, as they seek to reshape the continent's digital payment landscape and provide a European alternative to the US-led market.

On Thursday, ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank and Raiffeisen Bank International confirmed that they are collaborating on the launch of a digital payment instrument that will leverage blockchain technology, with release expected in the second half of 2026.

The initiative will also see the bank establish a new company in the Netherlands, with the aim of obtaining a licence and supervision from the Dutch Central Bank as an electronic money institution.

The banks said the stablecoin will seek to provide near-instant, low-cost payments and settlements, enabling 24/7 access to efficient cross-border payments, programmable payments and improvements in supply chain management and digital asset settlements - from securities to cryptocurrencies.

The stablecoin will be regulated by the EU's Markets in Crypto-Assets Regulation (MiCAR), a legal framework established in 2023 that aims to create uniform rules for crypto-assets and service providers across all member states. 

The framework, which covers transparency, disclosure, authorisation, and supervision for crypto-asset issuers and service providers, aims to protect consumers, boost market integrity, and promote financial stability in the EU's digital finance sector. 

The consortium has stated that it is open to new banks joining and plans to appoint a chief executive for the Netherlands-based business in the near future, subject to regulatory approval.

Individual banks will also be able to provide their own value-added services, such as stablecoin wallets and custody.

Flaminia Lucia Franca, head of transaction banking at Danske Bank, said that digital assets have the power to transform the financial landscape by unlocking significant efficiencies and savings for both the financial sector and customers.

“We are proud to be part of this initiative, working alongside other leading European banks to build a trusted, MiCAR-compliant stablecoin that supports innovation, transparency and actively seeks out pain points, such as inefficiencies, frictions and cost burdens, that this technology can help resolve,” she said.

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