Dutch banking giant ING is working on a euro-backed stablecoin in collaboration with other traditional financial institutions and crypto service providers, CoinDesk reported on April 22, citing people familiar with the matter.

According to the report, the stablecoin effort could take the form of a consortium, though progress has been slow as multiple participating firms await board-level approvals. ING declined to comment.

MiCA catalyzing euro-backed stablecoins

The project follows the EU’s Markets in Crypto-Assets (MiCA) regulation, which came into force last year and introduced a uniform legal framework for digital asset operations across the 27-member bloc.

For stablecoin issuers, MiCA mandates licensing, regular disclosures, and fully collateralized reserves held with European banks, conditions that have incentivized banks to enter a space once dominated by crypto-native firms.

Société Générale became the first major European bank to launch a regulated stablecoin through its SG Forge division. Circle’s euro-pegged EURC has also gained early momentum under MiCA, in contrast to US dollar stablecoins like USDT, which face regulatory headwinds in the region.

Wall Street giant JPMorgan recently said in a research note that MiCA’s requirements were already reshaping the competitive landscape for stablecoins in Europe by favoring transparency and compliance.

TradFi sees opportunity in stablecoins

Stablecoins are gaining momentum in traditional finance, with a growing number of established banks launching or planning their own digital tokens.

Standard Chartered is backing a Hong Kong dollar-pegged stablecoin to streamline cross-border payments, while US institutions like Bank of America have announced stablecoin ambitions pending regulatory clarity.

Custodia Bank and Vantage Bank recently launched Avit, the first US bank-issued stablecoin on a public blockchain, and Puerto Rico-based FV Bank reported that stablecoin usage is on track to surpass traditional rails.

As regulatory frameworks mature, banks are beginning to position stablecoins as core infrastructure for faster, cheaper, and programmable financial services.

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