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Nine prominent European banks have established a coalition to introduce a MiCAR-compliant euro-linked stablecoin in the latter half of the upcoming year.
ING, UniCredit, & Additional European Banks Are Collaborating on Stablecoin
As revealed in a press announcement by the Italian banking powerhouse UniCredit, the institution is collaborating with eight other leading European entities to launch a stablecoin tied to the euro.
“This digital payment tool, utilizing blockchain innovation, seeks to establish a reliable European payment benchmark within the digital landscape,” stated the press announcement.
The stablecoin will conform to the European Union’s Markets in Crypto-Assets Regulation (MiCAR), the bloc’s extensive framework regarding cryptocurrencies. MiCAR encompasses various aspects, such as the issuance and custody of digital holdings, along with the functioning of platforms associated with them.
The complete roster of banks that have united to create the consortium for the euro-based token comprises: ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International.
All of these are significant banking entities, but two stand out: ING and UniCredit. ING is a Dutch multinational institution categorized as a Global Systemically Important Bank (G-SIB) by the Financial Stability Board (FSB). G-SIBs are deemed institutions so embedded in the global financial system that any disturbances associated with them can lead to extensive economic ramifications. Italy’s UniCredit was also part of this classification until 2023, when the FSB excluded it from the list.
The nine banks have created a new organization in the Netherlands, aspiring to obtain authorization from the Dutch Central Bank as an e-money institution. The press announcement mentioned that the consortium is open to additional banks joining them. The stablecoin, which is currently scheduled for launch in the latter half of 2026, will be positioned as a genuine European alternative to the presently US-dominated landscape.
“At UniCredit, we are advocates of a more robust Europe and the significance of constructive communication and teamwork,” stated Fiona Melrose, Head of Group Strategy and ESG at UniCredit. “By participating in this collective of leading European banks, we are helping to meet the demand for a reliable, regulated solution for on-chain payments and settlements.”
The consortium also plans to appoint a Chief Executive Officer (CEO) soon, pending regulatory consent, to oversee the new entity in the Netherlands.
In the meantime, in the US, stablecoins have been experiencing regulatory momentum recently. Just this Tuesday, the Commodity Futures Trading Commission (CFTC) initiated a campaign to investigate their usage as collateral in derivatives markets, a step that could further integrate them into traditional finance.
Bitcoin Valuation
After almost bouncing back toward $114,000 on Wednesday, Bitcoin has suffered another setback as its value has decreased to $111,200.
The trend in the BTC valuation over the last five days | Source: BTCUSDT on TradingView
This shift in the cryptocurrency has resulted in liquidations exceeding $76 million in the derivatives sector.
The 24-hour liquidation heatmap for the digital assets sector | Source: CoinGlass
Featured image from Dall-E, CoinGlass.com, chart from TradingView.com
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