The future of payments: uniting with European banks to launch a stablecoin

This digital payment instrument, leveraging blockchain technology, aims to become a trusted European payment standard in the digital ecosystem. The stablecoin will be regulated by EU's "Markets in Crypto-Assets Regulation" (MiCAR) and is expected to be first issued in the second half of 2026.

» What are stablecoins?

Stablecoins are digital currencies designed to maintain a stable value and are typically pegged to traditional assets such as government-issued currencies. They are underpinned by blockchain - a digital ledger technology that securely records transactions across multiple computers – but compared to other crypto assets Stablecoins are less volatile.  

» What are their benefits?

By leveraging blockchain, stablecoins can facilitate fast, secure, and low-cost transactions, making them an attractive option for both retail and corporate users in the evolving landscape of digital finance.

Stablecoins will enable 24/7 access to efficient cross-border payments, programmable payments, and improvements in supply chain management and digital asset settlements, which can vary from securities to cryptocurrencies.

» What does this mean for the future of European banking?

The stablecoin market has grown rapidly, reaching an all-time high market capitalization of over $290 billion, but this is dominated primarily by the US.

Europe currently lacks a EUR-denominated stablecoin that can gain market and regulatory trust and establish a common EUR-native digital payment rail. At present, only fragmented solutions exist, lacking the scale needed to set a European standard.

This initiative aims to provide a real European alternative to the US-dominated stablecoin market and enable banks to provide value added services, such as a stablecoin wallet and custody.

» Why this matters to us and what’s next

For UniCredit, joining this consortium will be both a valuable learning opportunity and a chance to play an important role in shaping the evolving financial landscape, allowing us to explore stablecoins, related innovations and potential applications.

To support this, a dedicated workforce will be set up across teams and functions, and potential business use cases will be closely monitored to ensure we are ready to seize opportunities as they emerge. This confirms our ongoing commitment to innovation and reinforces our pivotal role in shaping Europe’s financial future, ultimately strengthening the solutions we can offer to our clients.

The stablecoin consortium, with the nine banks as founding members, has formed a new company in the Netherlands and is aiming to be licensed and supervised by the Dutch Central Bank as an e-money institution. The consortium is open to additional banks joining, and a CEO is expected to be appointed in the near future, subject to regulatory approval. It will also aim to issue a MiCAR-compliant euro-denominated stablecoin in the second half of 2026.