CaixaBank, one of Spain’s largest lenders in terms of the overall scope of operations, has joined forces with eight other European banks to introduce a euro-denominated stablecoin.
Announced recently, this consortium aims to create a regulated digital asset that bridges traditional finance with the ecosystem of decentralized finance (DeFi), offering a seemingly more stable, efficient alternative to volatile cryptocurrencies.
The initiative, known as the European Stablecoin Consortium, brings together prominent figures from across the continent.
Alongside CaixaBank, the partners include France’s Société Générale-FORGE (a subsidiary of Société Générale), Germany’s DZ Bank, Italy’s Intesa Sanpaolo, and the Netherlands’ ABN AMRO.
Rounding out the group are Belgium’s KBC Bank, Sweden’s SEB, Austria’s Erste Group, and Luxembourg’s Banque Internationale à Luxembourg (BIL).
This diverse lineup represents a cross-border collaboration that underscores the pan-European ambition to foster innovation while maintaining financial sovereignty.
At the core of the project is a stablecoin—tentatively named “EuroChain”—pegged 1:1 to the euro and fully backed by high-quality reserves held in the participating banks.
Unlike algorithmic stablecoins that have faced scrutiny for their instability, this one promises transparency and redeemability, with users able to convert digital tokens back to fiat euros at any time.
The Digital Euro
The stablecoin is designed primarily for cross-border payments, remittances, and instant settlements, addressing pain points in the current SWIFT system, which can take days to process transactions.
By leveraging blockchain’s speed and low costs, the consortium envisions reducing transfer fees by up to 80% and enabling real-time processing.
Technologically, the stablecoin will be issued on a permissioned blockchain platform built on Hyperledger Fabric, an open-source framework favored for its enterprise-grade security and privacy features.
This choice reflects a deliberate pivot away from public blockchains like Ethereum to comply with stringent European data protection laws, including GDPR.
Smart contracts will automate reserve audits, ensuring monthly attestations by independent auditors to verify the 100% backing.
The platform will integrate with existing banking APIs, allowing seamless interoperability with core banking systems.
Regulatory compliance is a cornerstone of the endeavor.
The consortium is pursuing approval under the European Union’s Markets in Crypto-Assets (MiCA) regulation, which came fully into effect earlier this year.
MiCA provides a harmonized framework for stablecoins, classifying them as “e-money tokens” and mandating strict liquidity, transparency, and anti-money laundering (AML) standards.
Gonzalo Gortázar, CEO of CaixaBank, says,
“By anchoring our stablecoin in regulated reserves and MiCA-compliant structures, we’re building a bridge to the future of finance that’s safe, scalable, and quintessentially European.”
Société Générale’s Jean-François Colas, head of digital assets, echoed this sentiment:
“In a world dominated by dollar-pegged stablecoins, it’s time for Europe to assert its monetary independence.”
The timeline is ambitious: a pilot launch is slated for Q1 2026, targeting institutional clients for wholesale payments, with a retail rollout to follow by mid-year, pending regulatory approval.
The initial focus will be on high-volume corridors, such as Spain-France and Germany-Italy, where intra-EU transfers exceed €2 trillion annually.
This development arrives amid a surge in stablecoin adoption.
The global stablecoin market capitalization has ballooned to over $200 billion by 2025, driven primarily by Tether (USDT) and Circle (NYSE:CRCL) (USDC). However, euro-denominated options lag behind, accounting for less than 5%.
The consortium’s entry could capture a slice of this pie, potentially injecting €50 billion in liquidity within three years, according to internal projections.
It also aligns with the European Central Bank’s (ECB) digital euro explorations, though officials have stressed that private initiatives like this complement rather than compete with a potential CBDC.
Broader implications extend to DeFi and tokenization.
The stablecoin could underpin decentralized lending platforms, real estate tokenization, and supply chain finance, all while keeping value within Europe’s economic orbit.
For consumers, it means cheaper, faster remittances—vital for the 23 million EU migrants who send home €70 billion each year.
Yet challenges persist:
Critics warn of risks associated with centralization if banks dominate issuance, potentially stifling true decentralization.
Cybersecurity threats and the need for widespread wallet adoption also pose hurdles.
Ultimately, this alliance positions Europe as a stablecoin enabler of sorts, countering the dominance of the U.S. and Asia.
Gortázar says,
“We’re not just issuing a token; we’re issuing a vision for inclusive, resilient finance.”
If successful, EuroChain could potentially redefine how Europeans transact in the digital age, combining the euro’s stability with blockchain’s fundamental value proposition.
