Neutral Briefing Note: Euro Stablecoin Project Under MiCA

1) Scope

A group of nine European banks has incorporated a company in the Netherlands to issue a euro-denominated stablecoin that will operate within the EU’s Markets in Crypto-Assets (MiCA) framework. The token is intended for payments, settlement, and programmable use cases in the Single Market.

2) Parties Involved

Institutions: ING, UniCredit, Banca Sella, KBC, Danske Bank, DekaBank, SEB, CaixaBank, Raiffeisen Bank International.
Coverage: The consortium spans eight EU member states.
Operating base: Netherlands (newly formed entity to run issuance, reserves, and compliance).

3) Regulatory Position

• Legal framework: MiCA has applied since 30 June 2024.

• Intended classification: E-Money Token (EMT) (MiCA distinguishes EMTs from asset-referenced tokens/ARTs).

• Licensing plan: Authorization as an e-money institution will be sought with De Nederlandsche Bank as the supervisory authority.

• Key constraints: MiCA includes a payments activity cap of about €200 million per day, plus reserve, disclosure, governance, AML/CFT, and incident-handling requirements.

4) Functional Objectives

• Continuous availability (24/7) and low-latency settlement.

• Cross-border usability inside the EU.

• Programmable logic for conditional and automated transfers.

• Potential efficiency gains for treasury and supply-chain reconciliation.
  Public representatives for the initiative, including Floris Lugt (ING, Digital Assets Lead), have described the project as euro-native rails designed for transparency and always-on settlement.

5) Deployment Schedule

• Target launch window: H2 2026.

• Policy backdrop: The ECB’s digital euro is a separate, public-sector initiative that is not expected before mid-2029. The consortium’s token is a private-sector instrument intended to function under existing EU regulation.

6) Market Setting (Selected Figures)

• Global stablecoin float: approximately $292B.

• Currency composition: around 99% is USD-pegged.

• Euro-linked supply: roughly €500M (≈ $587M).
  The project is positioned to increase the euro’s share of on-chain liquidity within a regulated perimeter.

7) Competitive Reference (Tether)

• Reported capital raise: $15–20B for ~3% equity, implying a potential $500B valuation; Cantor Fitzgerald reportedly advising.

• USDT scale: about $172B market capitalization.

• Profit reference: approximately $4.9B net profit in Q2 2025, largely from interest on reserves.
  These data points illustrate the commercial scale of the market the banks intend to enter. (Read our $500B Tether report here.)

8) Participation & Services

• Membership: Additional European banks may join.

• Service layer from members: wallets, custody, and integration options are planned to support client usage.

• Governance: Appointment of a CEO for the Dutch operating company is expected, subject to regulatory approvals.

9) Data Sheet (Concise)

• Asset: Euro-denominated stablecoin intended as a MiCA EMT.

• Issuer: Netherlands-incorporated consortium vehicle.

• Supervisor (target): De Nederlandsche Bank (e-money institution license).

• Launch: H2 2026.

• Uses: Always-on payments, cross-border settlement, programmable finance.

• Aim: Expand euro liquidity on-chain and provide a regulated alternative to USD-centric stablecoins.