Europe’s landmark Markets in Crypto Assets (MiCA) regulation is paving the way for established financial institutions to explore digital assets, with major banks beginning to make their moves.
Dutch banking heavyweight ING is reportedly gearing up to enter the burgeoning Euro stablecoin arena. Informed sources suggest ING is coordinating with other banks to form a consortium aimed at developing and introducing a stablecoin pegged to the Euro.
While ING has remained silent on these specific developments, individuals familiar with the discussions confirm the initiative is active. However, progress is reportedly measured as the consortium navigates the regulatory landscape to establish the necessary joint entity.
This potential move by ING follows similar steps by other European financial players. Notably, Société Générale’s subsidiary, SG FORGE, has already deployed its own Euro-backed stablecoin on the Stellar blockchain network.
MiCA Regulation Creates Stablecoin Opportunities
The strategic push into stablecoins aims to leverage the framework provided by the EU’s MiCA regulation, which establishes clear, albeit strict, guidelines for issuing such digital assets. This regulatory clarity has reshaped the competitive landscape, potentially sidelining major players who don’t meet the new requirements.
Simultaneously, the European Central Bank’s own central bank digital currency (CBDC), the Digital Euro, faces hurdles. Its potential launch creates a window for private sector banks to propose solutions addressing the EU’s fragmented payments system.
Although the ECB targets a Digital Euro launch later this year, skepticism from some EU member states and pushback within the European Commission regarding a pan-European CBDC persist.
Meanwhile, regulatory developments are also accelerating in the U.S. with the proposed STABLE Act, designed to govern stablecoin issuance. This potential legislation is already influencing market strategies, attracting interest from various financial entities.
Payment giant Visa, for example, is actively testing the use of stablecoins like USDC for settlement processes on blockchain platforms. Furthermore, the launch of the USD1 stablecoin by World Liberty Financial has drawn attention, albeit accompanied by scrutiny over potential conflicts.