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Europe’s biggest banks are dipping their toes into crypto waters. Nine major lenders, including ING, UniCredit and DekaBank, are banding together to launch a euro-backed stablecoin later this year, even as the European Central Bank warns such digital tokens could shake financial stability.
The new coin, set to roll out in the second half of 2025, will be managed from Amsterdam and pitched as a fast, cheap way to handle payments across borders. A CEO is expected to be named soon, and other banks may join the consortium, which already includes CaixaBank, Raiffeisen, Danske Bank, KBC, SEB and Banca Sella.
By tying the coin to the euro, the banks hope to offer a “regulated” digital option that doesn’t carry the wild price swings of bitcoin or other cryptocurrencies. But the timing raises eyebrows: ECB President Christine Lagarde has been urging lawmakers to speed up work on a digital euro, while the head of France’s central bank warned this week that Europe risks falling behind in the global race for stablecoins.
So far, Europe’s experiments haven’t gone far. Societe Generale launched a euro-pegged coin in 2023, but few adopted it. By comparison, nearly all of the $300 billion in stablecoins worldwide are tied to the U.S. dollar, with euro-linked coins making up barely $620 million.
Still, with the overall crypto market now worth about $4 trillion, the banks clearly see an opening. For a sector long accused of dragging its feet on innovation, the stablecoin push looks like Europe’s big-money players are finally stepping onto the digital stage
