Europe’s Multi-Bank Euro Stablecoin: What The MiCAR-Compliant Consortium Means For Payments

CREDITS: NFK Podcast
GUEST: Vid Hribar (Raiffeisen Bank International)

Europe is entering a more concrete phase of regulated stablecoin execution in 2026, led by banks rather than crypto-native issuers.

In a recent conversation with an RBI blockchain strategy lead, the central argument was that a single, jointly issued euro stablecoin can reduce market fragmentation and raise trust for corporate adoption.

The initiative is described as an open consortium of nine banks working toward a MiCAR-compliant euro stablecoin regulated as an e-money token.

The discussion framed the primary value not as replacing euro payments inside SEPA, but as expanding euro liquidity for crypto trading, cross-border corridors beyond SEPA, and on-chain settlement for tokenized assets.

This is the type of infrastructure-level move we at the Stablecoin Insider track closely because it signals a shift from pilots and narratives to regulated distribution and operational delivery.

Key Takeaways

• Nine banks are building one MiCAR-compliant euro stablecoin to avoid a fragmented market of separate bank-issued coins.
• The product is described as an e-money token under MiCAR and requires an e-money license plus strict reserve and redemption rules.
• The near-term targets highlighted were EUR trading pairs, cross-border payments outside SEPA, and early onchain settlement use cases.
• The technical direction discussed favors public blockchains first (Ethereum or EVM-compatible), with a multi-chain roadmap later driven by demand.
• Strategically, the project is positioned as Europe’s response to USD stablecoin dominance and a push for greater payment autonomy.

What Was Announced, And Why The Multi-Bank Structure Matters in 2026

The Initiative, As Described

The conversation centered on a newly formed consortium of nine banks that publicly announced plans to issue a euro stablecoin designed to be compliant with MiCAR.

Vid Hribar described the consortium as open, with the expectation that additional banks will join over time. The stated objective is to build a trusted, regulated euro-denominated onchain payment and settlement asset that supports a larger ecosystem rather than remaining confined to a closed loop.

He repeatedly positioned the new entity as a bridge between the banking world and the digital asset ecosystem. In practical terms, that implies the stablecoin is not only intended for bank clients but also for third parties such as crypto exchanges, fintechs, and payment service providers.

Why Joint Issuance Was The Chosen Model

The clearest operational rationale offered was this: if each bank issues its own stablecoin, the market becomes fragmented, and interoperability becomes a recurring problem rather than a one-time integration.

Vid referenced lessons from earlier pilots, arguing that technical issuance is achievable, but scaling adoption across multiple “bank coins” creates a coordination tax the market then has to solve.

Stablecoin Insider view:
A multi-issuer euro stablecoin structure is directionally aligned with how euro liquidity actually needs to work onchain. If Europe’s goal is standardized redemption, broad distribution, and interoperability by default, a shared issuance model is structurally more coherent than a collection of competing bank tokens. The critical question is not whether “banks can issue,” but whether liquidity, integrations, and usage concentrate quickly enough to become a de facto rail.

MiCAR Compliance In Practice: E-Money Token Structure, Reserves, And Trust

What MiCAR Changes For Banks

A recurring theme in the discussion was that banks need regulatory clarity before entering a category. Vid presented MiCAR as the catalyst that shifts stablecoins from a largely unregulated environment into something banks can operationalize with clearer requirements and regulatory expectations.

He described that under MiCAR, a European regulated stablecoin is treated as an e-money token.

In the conversation, the e-money token framing was not treated as a marketing label; it was treated as the legal and operational wrapper that determines licensing, reserves, consumer protections, and the issuer’s responsibilities.

Reserve Backing And Redemption, As Explained

When asked what a euro stablecoin is backed by, Vid said MiCAR imposes strict rules. He described reserves in two broad components:

1. Commercial bank deposits to ensure liquidity when holders redeem the stablecoin.
2. High-quality liquid assets, which he described as including treasury bonds and similar instruments that are liquid and relatively low risk.

He also noted that requirements can change depending on whether the issuer is classified as significant. The practical point he emphasized was not the fine print of allocation ratios, but the direction: MiCAR is designed to increase consumer protection and support financial and market stability, even if some market participants consider the rules demanding for issuers’ business models.

The Trust Argument

One of the Vid's strongest claims was that trust remains the key gating factor for mass adoption, especially among corporate clients. He argued that corporate buyers may place lower trust in certain fintech-issued stablecoins due to concerns around whether processes are fully aligned with regulation and whether reserves are adequate at redemption.

His conclusion was that banks, despite being slower in innovation cycles, bring established trust and governance into the stablecoin category.

Stablecoin Insider view: trust is necessary but not sufficient. MiCAR compliance can raise baseline confidence, but market adoption also depends on liquidity depth, integration coverage, and predictable redemption operations under stress. In stablecoins, trust is tested in edge cases, not in calm markets. The consortium structure may help here, but execution will matter more than branding.

The Strategic Frame: Europe’s Payment Autonomy Versus USD Stablecoin Dominance

The Market Share Mismatch Highlighted In The Conversation

The discussion positioned USD stablecoins as dominant in the global stablecoin market.

Vid cited figures indicating an overwhelming USD share and a very small euro share (he referenced approximately 99.8% USD-denominated and 0.2% euro-denominated, acknowledging other currencies exist but are materially smaller).

He then compared this to international trade and payment flows. While he said the USD still has the biggest share, he cited the euro share of international trade as around 20%, based on various reports. He presented the difference between the euro’s role in international activity and its role in stablecoin market structure as both:

• An opportunity to expand euro-denominated onchain liquidity, and
• A defensive move to prevent USD dominance from increasing further if future cross-border payment flows shift toward stablecoin settlement.

Geopolitics And Incentives, As Discussed

Vid emphasized geopolitical context, stating that the US has a clear objective to lead in digital assets and is promoting stablecoins. He also claimed that USD stablecoins indirectly refinance US national debt due to their reserve composition and demand dynamics.

Stablecoin Insider view: regardless of how one weighs the geopolitics, the strategic logic presented is coherent. If stablecoins become a meaningful settlement asset for cross-border commerce, currency-denominated liquidity onchain becomes a macro infrastructure question, not merely a fintech product question. Europe’s response is less about novelty and more about ensuring that euro liquidity is available in the formats markets actually use.

Chain Strategy: Public Blockchains First, Multi-Chain As A Market Outcome

Public Versus Private: The Industry Arc Presented

The host asked directly which blockchain the stablecoin would use. Vid's answer was framed through the industry’s evolution:

• Early public blockchains faced challenges (he cited scalability, privacy, and fees as typical constraints).
• Private blockchain experiments attempted to extract benefits while confining participation, but were difficult to scale and did not capture the same innovation momentum.
• The industry then moved back toward public blockchains, where most developer activity and innovation occur.

He explicitly flagged privacy as still an unresolved challenge, while also stating that many capable teams are working on solutions.

Likely Initial Deployment And The Multi-Chain Roadmap

Vid said they assessed multiple blockchains across criteria such as scalability, reliability, security, developer activity, and fees. He also said they still had months before going live and that the selection process was ongoing.

However, he offered a directional expectation: an initial deployment on a public blockchain such as Ethereum or an EVM-compatible chain, followed by expansion to multiple chains in the mid to long term depending on demand.

The reasoning was buyer-driven. The stablecoin is being issued to serve the needs of counterparties, firms that want to do cross-border payments or settle tokenized assets, and the stablecoin’s chain support would follow where those parties build.

Stablecoin Insider view: this demand-led chain approach is pragmatic. For a regulated euro stablecoin, the question is not ideological preference for one chain, but operational coverage: where can it integrate, clear, and redeem reliably across the environments where real transactions occur.

Use Cases: Where The Consortium Thinks A Euro Stablecoin Can Win

Vid has split stablecoin use cases into “current” and “future.” He described early stablecoin demand as primarily crypto trading and DeFi, with store-of-value usage in emerging markets as another major driver. He then stated that stablecoins are now moving more into the payment space, especially cross-border, and that tokenized asset settlement may become a next major category.

Below are the use cases he highlighted for this specific euro stablecoin initiative:

1) Crypto Trading: Building Liquid EUR Trading Pairs

Vid argued that most cryptocurrency markets are denominated in USD. That creates friction for European traders who prefer to operate in euros and avoid currency risk and conversion fees. A liquid euro stablecoin could become a meaningful trading pair, but he emphasized liquidity as the key requirement.

2) Cross-Border Payments Outside SEPA: Targeting The Real Pain Points

The guest was explicit that Europe’s internal payment systems work well and that SEPA payments can be fast and low cost. He said he did not see a “market failure” in domestic and intra-SEPA euro payments.

Instead, he framed the opportunity in cross-border corridors beyond regional systems, where payments can become slower, more expensive, and less transparent due to intermediaries. He contrasted that with stablecoins, where tracking is more straightforward and settlement can be continuous.

3) Tokenized Asset Settlement: Cash-Onchain For Delivery Versus Payment

Vid described tokenized asset settlement as a mid-to-long-term opportunity. His core point was that delivery-versus-payment requires both the asset and the money leg to exist onchain to swap and settle instantaneously.

In this framing, a euro stablecoin becomes “cash on blockchain” that tokenized markets need to function efficiently.

4) Programmable Liquidity: Automating Treasury Rules

When asked for a concrete example, he cited an industry case involving JP Morgan and Siemens using tokenized deposits (not stablecoins) for rule-based liquidity management across a multinational’s entities. He described a logic where rules trigger funding from one wallet/entity when another falls below a threshold, cascading if needed.

His conclusion was that programmable money gives clients the ability to define and execute treasury rules without manual payment initiation. He also argued banks themselves can benefit, as they move money constantly and can gain efficiency through automation.

5) Longer-Term: AI Agent Payments

Vid also named AI agent payments as a more futuristic use case, arguing that stablecoins fit naturally into programmable settlement scenarios where software agents transact continuously.

Practical Summary Table: Use Cases, Buyers, And Timelines (From The Conversation)

Roadmap And Milestones: What Was Said About Licensing And Launch

Vid outlined a sequence of milestones:

• The entity was incorporated in September, with the consortium’s public announcement also referenced as occurring in September.
• The next major milestone is applying for an e-money license, described as necessary for issuing an e-money token stablecoin.
• He said the license application would be filed in the Netherlands after final preparation and polishing, with submission planned in the coming weeks (relative to the time of the conversation).
• He then described building out operations and conducting proof-of-concepts or pilots where permitted by the regulator.

On timing, two statements appeared in the discussion:

• The host said the consortium aims for first issuance in the second half of 2026.
• Vid also referenced a planned go-live “somewhere in summer next year,” which is dependent on when the conversation was recorded.

Stablecoin Insider view: the key takeaway is not the exact month, but that the project is working through licensing, operational setup, and pilot constraints before launch, meaning it is being treated as a regulated financial product rollout, not a crypto token launch.

Conclusion

A MiCAR-compliant, multi-bank euro stablecoin is among the clearest attempts to industrialize regulated euro liquidity onchain.

The logic presented is straightforward: a shared stablecoin reduces fragmentation, while MiCAR forces reserve and redemption discipline that banks can operate within.

The most immediate value is not replacing SEPA, but enabling euro liquidity for crypto trading, improving cross-border corridors beyond SEPA, and supporting settlement for tokenized assets.

Over time, programmable treasury operations and broader onchain finance integration become the larger strategic prize.

Stablecoin Insider will be watching two variables most closely: whether liquidity concentrates fast enough to become a standard, and whether integrations with exchanges, PSPs, and institutional workflows become deep enough to generate repeatable volume.

Read Next:

• 2025 Stablecoin Spending Report
• Who Is Winning the Stablecoin Infrastructure Race?
• The Neobank Transition Report

FAQs:

1) What is a MiCAR-compliant euro stablecoin in this context?

It is a euro-denominated stablecoin structured to meet MiCAR requirements and described in the discussion as a regulated e-money token, which implies licensing, reserve rules, and defined redemption obligations.

2) Why are nine banks issuing one euro stablecoin instead of separate bank stablecoins?

The stated reason is to prevent fragmentation. A single shared euro stablecoin avoids a market where every bank issues its own coin and then must solve interoperability across many competing euro tokens.

3) What backs a regulated euro stablecoin under MiCAR, based on the discussion?

Vid described a reserve mix that includes commercial bank deposits to support liquidity for redemption and high-quality liquid assets such as treasury bonds and similar instruments, under strict MiCAR rules.

4) Is the goal to replace SEPA payments inside Europe?

No. The discussion emphasized that SEPA payments in Europe already work well and that the primary opportunities are cross-border corridors beyond SEPA, programmable payments, and tokenized asset settlement.

5) Which blockchain is the euro stablecoin expected to launch on?

Vid suggested a public blockchain approach first, likely Ethereum or an EVM-compatible chain, followed by a multi-chain roadmap based on where customers and counterparties build and transact.

6) What use cases were presented as the most realistic early drivers?

The conversation highlighted euro liquidity for crypto trading (EUR trading pairs), cross-border payments outside SEPA corridors, and early steps toward onchain settlement use cases as tokenized markets mature.

Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.