Dutch bank ING is reportedly collaborating with other banks and crypto firms to develop a stablecoin, leveraging Europe’s MiCA regulations which allow for regulated stablecoin issuance. The project is moving slowly due to necessary board approvals. MiCA mandates stablecoin issuers to maintain significant reserves and seek necessary licenses, providing competitive edge to euro-denominated coins.
Dutch bank ING is reportedly developing a new stablecoin in collaboration with various traditional finance (TradFi) institutions and cryptocurrency firms. This project aims to harness the regulatory framework established by Europe’s Markets in Crypto Assets (MiCA) regime, which facilitates the issuance of regulated stablecoins across the 27-member trading bloc.
Sources familiar with the initiative indicated that the stablecoin could emerge from a consortium involving multiple banks and crypto service providers. However, the project is progressing slowly as it necessitates board approvals from the participating banks to form a collaborative entity.
ING’s endeavours come as MiCA’s regulations require stablecoin issuers within the European Union to obtain an authorization license, thereby ensuring compliance with local legislation. This regulatory environment is particularly conducive for euro-denominated stablecoins, which are anticipated to compete against popular dollar-pegged alternatives.
Notably, European Union members are required to uphold considerable reserves in local banks, a provision that bolsters the competitive stance of compliant stablecoins, such as Circle’s EURC, compared to Tether, a leading rival. The entry of ING into the stablecoin market suggests emerging competition for Société Générale, which pioneered stablecoin services through its innovation branch, SG Forge.
