Creating an alternative to the US dollar! A consortium of nine major European banks has officially announced the development of a euro-denominated stablecoin.

To create a new alternative in a dollar-dominated market, nine European banks have joined forces to launch a euro-denominated stablecoin.

According to a statement released by DekaBank, the participating banks include UniCredit (UNCRY.US), ING (ING.US), DekaBank, Banca Sella, KBC Group NV, Danske Bank AS, SEB AB, CaixaBank (CAIXY.US), and Raiffeisen Bank International (RAIFY.US). The stablecoin is scheduled to launch in the second half of 2026.

The statement stated that the goal of the collaboration is to "create a European alternative to the currently US-dominated stablecoin market, thereby contributing to Europe's strategic autonomy in the payments sector."

The consortium has established a new company in the Netherlands to advance the project. The statement also stated that the consortium welcomes other banks to join the initiative. This development is the latest sign of European banks warming to digital assets. This comes months after the EU's Crypto-Asset Market Regulation (CAC) came into full effect. Spain's Santander (SAN.US) is reportedly considering entering the sector, while earlier this summer, a company backed by Deutsche Bank's (DB.US) subsidiary, DWS Group, issued a euro-denominated stablecoin.

Stablecoins are typically pegged to fiat currencies like the US dollar, and their potential as alternative payment gateways has drawn significant attention from the banking industry. Tether, the world's largest stablecoin issuer, generates billions of dollars in profits each quarter solely from the yield on the US Treasury bonds that back its tokens.