European Banks Launch Euro Stablecoin to Challenge Dollar Dominance

On September 25, 2025, a powerful alliance of nine European financial institutions announced the formation of a consortium to develop a regulated, euro-pegged stablecoin. The participating banks—UniCredit and Banca Sella from Italy, ING from the Netherlands, Germany’s DekaBank, Belgium’s KBC Group, Denmark’s Danske Bank, Sweden’s SEB, Spain’s CaixaBank, and Austria’s Raiffeisen Bank International—represent a significant cross-section of the continent’s banking sector. The consortium has established a new Netherlands-based company that will be responsible for issuing the token, with a planned launch in the second half of 2026.

The primary objective is clear: to challenge the current duopoly of dollar-backed stablecoins. The stablecoin market, valued in the hundreds of billions, is almost entirely dominated by Tether’s USDT, with a market capitalization of $173 billion, and Circle’s USDC, valued at $74 billion. This dominance means that the vast majority of global crypto transactions and digital payments are ultimately settled in US dollars, a situation European policymakers and financial leaders are keen to rectify. The initiative is widely seen as a crucial step for Europe to attain strategic autonomy and regain control over its digital payment infrastructure.

Europe’s bold move is underpinned by the Markets in Crypto-Assets (MiCA) regulation, which provides a comprehensive and clear legal framework for stablecoin issuance. This regulatory clarity offers a safer and more predictable environment compared to the evolving landscape in the United States, giving the euro stablecoin project a significant advantage. The initiative has received strong endorsements from key European financial figures.

Floris Lugt, ING’s digital assets lead, highlighted the practical benefits, stating that stablecoins can significantly speed up cross-border payments and currency settlements. An accompanying ING press release elaborated on their potential to automate business transactions and improve efficiency in supply chain payments. The sentiment was echoed at the central bank level. Joachim Nagel, a member of the European Central Bank’s Governing Council, described the digital euro as an “essential milestone for EU financial sovereignty.” Similarly, Francois Villeroy de Galhau, Governor of the Bank of France, issued a warning, noting that if Europe fails to keep pace, it risks future domination by private, dollar-backed stablecoins.

The announcement has sent ripples through the cryptocurrency market, boosting investor confidence in the sector’s growth trajectory. Analysts project that the stablecoin market could handle an astronomical $100 trillion to $200 trillion in annual payments by 2030. This growth is expected to benefit not only the issuing banks but also the entire ecosystem of crypto services, particularly secure wallets and utility tokens that facilitate stablecoin use.

This optimism is already manifesting in projects like Best Wallet Token ($BEST), the native token of a multi-chain crypto wallet. The project’s presale has gained remarkable momentum, raising over $16.1 million. The wallet app, which supports onramping, secure storage, and swaps for stablecoins and other tokens, aims to capture a significant share of the market. The $BEST token offers holders governance rights, reduced fees, and access to staking rewards, positioning it as a potential beneficiary of the rising tide of institutional and retail interest in euro-denominated digital assets. Large-scale purchases, or ‘whale’ buys, worth tens of thousands of dollars have been noted, reflecting strong belief in the project’s upside potential alongside the broader European stablecoin narrative.